Abstract
Behavioural finance, which integrates psychological and behavioural factors into investment decisions, contests conventional financial theories by analyzing investors' cognitive abilities and psychological phenomena. This research examines the investment behaviour of individual investors in Tiruchirappalli district city. The study aims to understand the impact of demographic and psychological characteristics on investment behaviour. The high savings rate in India emphasizes the importance of individual investors, who often lack comprehension and perception of various financial products. The study uses personality traits and demographic information to analyze investor behaviour. The initial survey used a well-organized questionnaire to analyze the investment situation, knowledge, perception, and investments of individual investors in Tiruchirappalli district. The data were examined using SPSS 26, and the frequency of demographic factors, investors' perception of various investment alternatives, and also using AMOS 24. Investors tend to choose traditional assets as they are more secure and easily converted into cash. Individual preferences can effectively satisfy both consumers and service providers, enhancing investor risk appetite through heightened awareness. This study encompasses the fields such as investor perception, preference, behaviour, demographic characteristics, and psychology.
References
1. Bakar, S., & Yi, A. N. C. (2016). The impact of psychological factors on investors’ decision making in Malaysian stock market: a case of Klang Valley and Pahang. Procedia Economics and Finance, 35, 319-328. https://doi.org/10.1016/S2212-5671(16)00040-X
2. Bell, D. E. (1985). Disappointment in decision making under uncertainty. Operations research, 33(1), 1-27. https://doi.org/10.1287/opre.33.1.1
3. Chen, F., Curran, P. J., Bollen, K. A., Kirby, J., & Paxton, P. (2008). An empirical evaluation of the use of fixed cutoff points in RMSEA test statistic in structural equation models. Sociological methods & research, 36(4), 462-494. https://doi.org/10.1177/0049124108314720
4. Dhiman, B., & Raheja, S. (2018). Do personality traits and emotional intelligence of investors determine their risk tolerance?. Management and Labour Studies, 43(1-2), 88-99. https://doi.org/10.1177/0258042X17745184
5. Dickason, Z., & Ferreira, S. (2018). Establishing a link between risk tolerance, investor personality and behavioural finance in South Africa. Cogent Economics & Finance, 6(1), 1519898. https://doi.org/10.1080/23322039.2018.1519898
https://doi.org/10.1016/S2212-5671(16)00040-X
6. Kahneman, D. (1979). Prospect theory: An analysis of decisions under risk. Econometrica, 47, 278. http://dx.doi.org/10.2307/1914185
7. Kahneman, D., & Riepe, M. W. (1998). Aspects of investor psychology. Journal of portfolio management, 24(4), 52-+. https://doi.org/10.3905/jpm.1998.409643
8. Markovits, Y., Davis, A. J., & Van Dick, R. (2007). Organizational commitment profiles and job satisfaction among Greek private and public sector employees. International journal of cross cultural management, 7(1), 77-99. https://doi.org/10.1177/1470595807075180
9. Muradoglu, G., & Harvey, N. (2012). Behavioural finance: the role of psychological factors in financial decisions. Review of Behavioural Finance, 4(2), 68-80. https://doi.org/10.1108/19405971211284862
10. Oprean, C., & Tanasescu, C. (2014). Effects of behavioural finance on emerging capital markets. Procedia Economics and Finance, 15, 1710-1716. https://doi.org/10.1016/S2212-5671(14)00645-5
11. Ritter, J. R. (2003). Behavioral finance. Pacific-Basin finance journal, 11(4), 429-437. https://doi.org/10.1016/S0927-538X(03)00048-9
12. Shefrin, H., & Statman, M. (2000). Behavioral portfolio theory. Journal of financial and quantitative analysis, 35(2), 127-151. https://doi.org/10.2307/2676187
13. Shiller, R. J. (2000). Measuring bubble expectations and investor confidence. The Journal of Psychology and Financial Markets, 1(1), 49-60. https://doi.org/10.1207/S15327760JPFM0101_05
14. Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral decision making, 12(3), 183-206. https://doi.org/10.1002/(SICI)1099-0771(199909)12:3%3C183::AID-BDM318%3E3.0.CO;2-F
15. Tversky, A., & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases: Biases in judgments reveal some heuristics of thinking under uncertainty. science, 185(4157), 1124-1131.

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright (c) 2025 South India Journal of Social Sciences
