Impact of psychological factors on Individual investment decisions: A Case study of Women Investors in Twin Cities of Telangana.

Abstract

This study explores the influence of psychological factors on the investment decisions of women investors in the Twin Cities of Telangana, encompassing Hyderabad and Secunderabad. Utilizing a quantitative methodology, the research surveyed a diverse group of female investors, employing validated psychological scales to assess traits such as risk tolerance, cognitive biases, and emotional control. The findings reveal that psychological factors significantly impact investment choices, with risk tolerance being the most predominant influence. Women with higher risk tolerance displayed a propensity towards equities and other high-risk investments, while those with lower risk tolerance favoured bonds and fixed deposits. The study also examines the role of emotional factors in decision-making processes, indicating that emotional control moderates the relationship between psychological traits and investment decisions. These insights contribute to a deeper understanding of gender-specific investment behaviours and underscore the need for tailored financial advising that recognizes the psychological dimensions of investing.