Abstract:
Risk is an inherent feature of all types of financial investments due to the variability in the actual and expected returns on investment .The concept ‘risk perception’ means the way in which investors view the risk of financial assets, based on their concerns and experience. The risk perception of investors is an important factor that influences the investment decisions. Hence, in the present study, based on the review of literature and discussions with experts in the field, a number of factors influencing the risk perception of investors were identified. These factors include unpredictability of returns, knowledge about the financial assets, chance for incurring loss, diversification of portfolios, and dependence on professional investment advice. The study utilized secondary data and is explorative. The study concludes that investors’ risk perception impacts positively on investment decision. The study recommends that investors have a better understanding of an investments’ potential return of fixed-income products. Finally, future researches in this area should be conducted that will utilize more statistical techniques
