Saving and Investment Behaviour: A Theoretical Perspective on Determinants, Financial Decision-Making and Emerging Investment Preferences

Author(s)	Ayushi Gupta, Prof. Naresh Kumar
Country	India
Abstract	Saving and investment behaviour represents a critical foundation of household financial stability and broader economic development. While saving involves reserving a portion of disposable income for future needs, investment focuses on allocating accumulated capital into income-generating or appreciating assets. Individual financial choices vary considerably due to the influence of disposable income, cognitive financial literacy, demographic stage, risk perception, family obligations, and digital access. This paper presents a theoretical framework synthesizing established paradigms including the Life-Cycle Hypothesis, Permanent Income Hypothesis, Modern Portfolio Theory, Prospect Theory, and the Theory of Planned Behaviour. The analysis reveals that contemporary saving and investment choices cannot be explained solely by conventional expected return and risk models; cognitive biases, social norms, and technological accessibility play equally vital roles. Understanding these multi-dimensional determinants is crucial for designing targeted financial literacy programs and fostering informed long-term wealth creation.
Keywords	Saving Behaviour, Investment Behaviour, Financial Decision-Making, Financial Literacy, Risk Perception, Investment Preferences, Behavioural Finance
Discipline	Other
Published In	Volume 4, Issue 5, September-October 2026
Published On	2026-09-22

About AIJMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@aijmr.com

Advanced International Journal of Multidisciplinary Research