Mediating Role of Risk Appetite between Investment Proficiency and Investor Perception on Investment Avenues

Abstract

The study investigates the mediating role of risk appetite between investment proficiency and investor perception among individual investors in Tiruchirappalli district. Utilizing purposive sampling, 487 investors were selected. Structural equation modeling and ANOVA techniques were employed to analyze relationships and demographic impacts on research variables. The study reveals that market forecasts, return prospects, and personal affluence significantly shape investment proficiency, guiding investment decisions effectively. The study highlights the substantial impact of investment proficiency on investor perception, elucidating the intricate dynamics between investor knowledge and market perception. Furthermore, the identification of partial mediation by risk appetite emphasizes the importance of implementing robust risk management strategies in shaping investor perceptions and decision-making processes. These findings offer valuable insights for investors and financial professionals, facilitating informed decision-making and risk mitigation strategies in investment endeavors.