Analysis of Investors Behaviour and Risk Perception in Investment

Abstract

The current economic uncertainties and market volatility needs an understanding of how investors behave and risk perception in the investment policies. The objective of this research is to identify and understand how investor behaviour and risk perception on investment. Data were collected using a valid and reliable questionnaire, consisting of three sections that are demographic information, Investor behaviour, and Risk perception. Statistical Analysis used to the collected data by using the Statistical Package for the Social Sciences (SPSS) and Microsoft Excel. From the findings, the researcher found out that the investors' behaviour and risk perception factors and the relationship of these three variables among demographic information such as education level, age group, and income level. Education level significantly influences investor behavior but does not impact their risk perception. Income level significantly affects risk perception but not overall investment behavior. Age does not seem to influence either investor behavior or risk perception. On the other hand, recommendations will be developed to assist future researchers. The research highlights that education level significantly affects investor behavior which suggests a need to explore how financial literacy and educational backgrounds influence investment decisions. Additionally, future studies need to investigate how cultural attitudes and regional differences in Malaysia which will impact investment behavior and risk perception.