Using structural equation modelling, this study investigates how young investors' activities are related, both directly and indirectly. The research focuses on investors as individuals who have been investing in Chennai for a period of years. The data were collected from 180 target respondents who were selected using the convenience sampling technique. The results support the idea that risk perception mediates the relationship between stock prices and investing decisions. Moreover, clustering bias, predisposition effect, and choices regarding investments are not mediated by risk perception. Nonetheless, there is a considerable correlation between risk perception and the disposition effect. Individual investors benefit from the research as they may use their estimations to make judgments about their investments rather than relying on the opinions of others. To counteract these prejudices, investors need to have the required training and knowledge. Risk is the biggest barrier when it comes to financial decision-making, yet blue-chip stocks significantly reduce risk. This study expanded on the mediating function of risk perception, whereas most previous research focused on the investing decisions and behavioral biases of individual investors. Human capital, oddities, computer proficiency, and artificial technology may also mediate and limit future direction.
Gayathri et al. (2025) studied this question.