Determinants of Investment Behaviour and Financial Decision-Making: The Role of Financial Literacy, Experience, and Risk Perception among Investors in the Kalyana Karnataka Region

Abstract

Investment behaviour is shaped by a combination of cognitive, psychological, and socio-economic factors that influence how individuals evaluate financial opportunities and manage investment risks. In emerging regions, understanding these determinants is essential for promoting sustainable financial inclusion and improving investment outcomes. This study investigates the influence of financial literacy, investment experience, and risk perception on the investment behaviour and financial decision-making of investors in the Kalyana Karnataka region. The research seeks to examine how financial knowledge enhances investors' ability to evaluate financial products, how accumulated investment experience contributes to rational decision-making, and how perceived investment risk affects portfolio selection and investment confidence. A quantitative research design is proposed using structured survey data collected from individual investors across the region. Statistical techniques are employed to evaluate the relationships among the identified constructs and to determine their relative influence on investment behaviour. The findings are expected to provide empirical evidence for policymakers, financial institutions, educators, and investment advisors in designing effective financial education initiatives and investor awareness programmes. The study also contributes to the growing behavioural finance literature by offering region-specific insights into investment decision-making within an economically developing area of India.