Risk Perception and Its Influence on Investment Decisions on Stock Market

Author(s)	Mr. AJITH SHETTY, Mr. JOSE TS, PRIYA SEQUEIRA
Country	India
Abstract	ABSTRACT Risk perception is one of the key factors influencing investment decisions in the stock market. This study examines the impact of risk perception on the investment behaviour of retail investors and explores the role of demographic and financial factors in shaping their attitudes toward risk. The study is based on primary data collected from 100 retail investors in Udupi and Dakshina Kannada districts of Karnataka through a structured questionnaire. Statistical tools such as correlation, regression, t-test, and ANOVA were used for data analysis. The findings reveal a significant positive relationship between risk perception and investment decisions, indicating that investors' understanding of risk strongly affects their investment choices. The study also found that age and financial literacy significantly influence risk perception, while gender and educational qualification do not. Furthermore, investors recognized portfolio diversification as an effective risk management strategy. The study concludes that enhancing financial literacy and risk awareness can help investors make more informed and confident investment decisions in the stock market.
Keywords	Keywords: Risk Perception, Investment Decisions, Stock Market, Retail Investors, Financial Literacy.
Field	Business Administration
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-07-02

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