Risk Aversion and Equity Investment Behaviour among Women Investors: Evidence from Telangana State

Abstract

In recent years, the participation of women in equity investment has grown significantly, owing to greater financial literacy, digital investment platforms, and better availability of financial markets. Yet, behavioral attributes remain an important part of the investment decision making process, especially for women investors who show different risk perception and financial confidence levels. This study examines the role of risk aversion on the equity investment behavior of the women investors in Telangana state employing an empirical model with Fuzzy-Analytical Hierarchy Process (Fuzzy-AHP). The study identifies and appraises the primary factors that affect equity investment decisions, such as financial literacy, investment confidence, social influence, digital investment preparedness and risk aversion. Data collection will be done using a structured questionnaire to the female investors in selected areas of Telangana State through primary data approach. It is a quantitative research design, and the fuzzy-AHP method is used to rank and prioritize the behavioural factors in the investment behaviour in uncertain and subjective judgment environments. The proposed method can be used to improve the accuracy of the evaluation of investor preferences by using fuzzy logic in pairwise comparison analysis. The outcome of the study is expected to show that women investors' risk aversion has a significant effect on their equity investment decisions and their involvement with equity investment. The paper helps advance the body of academic research on behavioural finance by applying a decision-science lens to the investment behaviour of women and delivers practical implications for financial institutions, financial advisors, and policy makers to support greater and more informed investment participation for women.