Advances in Consumer Research
Issue 6 : 52-56
Original Article
Determinants Of Investment Behavior In India: A Behavioral Finance Perspective On Risk Preference And Demographic Factors
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Department of Management Studies, St. John College of Engineering and Management, Palghar, India.
Abstract

This study examines the determinants of investment behavior amid retail investors in India in the context of increasing financial awareness and digital participation. The research focuses on understanding how demographic factors (age, income, and education) and behavioral factors (risk preference) influence investment decisions, particularly the proportion of monthly income allocated to investments. The study used a descriptive design, with primary data collected through structured survey instruments. Statistical techniques including correlation and regression analysis were employed to evaluate the relationships between variables. The findings unveil that risk preference is the prime predictor of investment behavior, showing a positive and statistically meaningful relationship with the percentage of income invested. In contrast, demographic characteristics(such as age, income, and education) exhibit relatively weak influence. The study also highlights the function of financial education(literacy) and digital adoption in enhancing investor decision-making. The results emphasize the importance of behavioral factors over demographic characteristics and suggest that financial advisors and policymakers should focus on personalized, risk-based approaches to improve investment outcomes

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