Risk Perception and Equity Portfolio Decisions: an Empirical Assessment of Indian Investors

Abstract

The present study focuses on the risk perception and portfolio management practices of equity investors in India. With the rapid growth of the Indian stock market and increasing participation of retail investors, understanding investor behavior toward risk and investment decisions has become highly significant. The study aims to analyze the level of risk awareness among equity investors, identify factors influencing investment decisions, and examine portfolio management strategies adopted by investors for maximizing returns and minimizing risks. The research is based on primary and secondary data collected through structured questionnaires, journals, reports, and financial publications. The study evaluates investor preferences regarding equity investments, diversification strategies, investment horizons, return expectations, and awareness of market fluctuations. It also examines the impact of demographic factors such as age, income, education, and occupation on investors risk perception and portfolio choices. The findings indicate that most investors are aware of market risks and prefer diversified portfolios to reduce uncertainty. Investors with higher financial knowledge and income levels tend to take calculated risks and invest in a wider range of equity instruments. The study also reveals that portfolio management plays an important role in achieving financial stability and long-term wealth creation. Proper analysis, diversification, and continuous monitoring of investments are considered essential for effective portfolio management. Keywords: Risk Perception, Portfolio Management, Equity Investors, Stock Market, Investment Decisions, Risk Awareness, Portfolio Diversification, Investment Strategy, Return Expectations, Financial Knowledge, Wealth Creation, Market Fluctuations, Investment Behavior, Risk Management, Equity Investments.