The influence of risk perception on portfolio choice among Mauritian retail investors

This study addresses the growing significance of comprehending behavioral aspects on investment decision-making by examining the impact of risk perception on portfolio choice among Mauritian retail investors. The study’s importance stems from its contribution to both scholarly literature and real-world financial decision-making, especially in emerging markets where investor behavior is still little understood. A structured questionnaire was used to gather primary data from a sample of 52 respondents utilizing a quantitative research methodology. The data was analyzed using statistical techniques such as multiple regression analysis, correlation analysis and reliability testing. The results confirm the validity of key financial theories. The study recommends that, to enhance investment decisions, investors should be better educated and financial information should be simplified and made more accessible. Additionally, financial advisors could better align investment plans with clients’ risk attitudes by incorporating behavioral data.