• Ms. Niharika Nitin Keer
• Dr. Abhilasha N

Introduction: The investment landscape in India is undergoing a significant shift as the population moves between traditional security and modern wealth creation. Understanding the evolving financial behavior involves analyzing the gap between distinct investment preferences and the psychological factors driving them. Purpose: The objective of the current paper is to understand the psychological, demographic, and educational factors influencing investment decisions and to identify the barriers preventing broader participation in capital markets. Methodology: The study is based on primary data collected from a sample of 100 respondents to analyze the gap between traditional investment preferences (such as Fixed Deposits and Gold) and modern financial avenues (such as Mutual Funds and Stocks). Findings: The study revealed a "Reliability Paradox" where 82% of respondents trust traditional assets despite 80% prioritizing high returns. While the majority are young and educated with a goal of wealth creation, a "Confidence Gap" exists; 63% cite psychological barriers like lack of knowledge over financial constraints. However, 74% expressed willingness to shift to modern investments if provided with proper guidance. Research Implications: The study focuses on the transition from a "Saver Mindset" to an "Investor Mindset." It recommends that financial institutions shift from product-pushing to education-first marketing and promote bridge products like SIPs to address the trust deficit. Originality: The current study adds to the body of knowledge by identifying the specific psychological barriers and trust deficits regarding modern financial instruments, offering actionable insights for converting high-potential demographics into active investors.

Investment Perception, Reliability Paradox, Financial Literacy, Wealth Creation, Investor Behavior

"A Study on Public Perception and Psychological Factors Influencing Investment Preferences in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.13, Issue 1, page no.257-266, January-2026, Available :http://www.jetir.org/papers/JETIRHH06036.pdf

"A Study on Public Perception and Psychological Factors Influencing Investment Preferences in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.13, Issue 1, page no. pp257-266, January-2026, Available at : http://www.jetir.org/papers/JETIRHH06036.pdf