A STUDY ON HOW LOSS AVERSION AFFECTS GEN Z'S INVESTMENT CHOICES
Ardra Sreekumar Sreekumar
Paper Contents
Abstract
This paper examines how loss aversion affects the decisions made by male and female investors who focus on risk perception and demographic factors. Using behavioural finance principles, the study looks at how tradersage, gender, income, and education affect their perspectives on risk and loss. Based mostly on data collected from traders in Bangalore, India, statistical analysis show that investorsrisk tolerance is greatly impacted by earnings tiers, even while loss aversion is enormous. Additionally, the study emphasizes how social media and information overload affect investment decisions, particularly for generation Z investors. According to the findings, younger traders may also exhibit a greater aversion to losses by favouring safer assets and giving socially conscious choices priority. The importance of managing loss aversion in investment strategies is highlighted by this study, especially in light of shifting demographic trends and market dynamics. Keywords Individual investors, behavioural finance, loss aversion, and demographics.
Copyright
Copyright © 2025 Ardra Sreekumar . This is an open access article distributed under the Creative Commons Attribution License.