Saving and investment form the bedrock of any nation’s economy. They contribute to capital formation, which sustains the economic activities of a country. Economic growth and development are dependent on the ability of the people of the country to earn, spend, save and invest money. Investment refers to the purchase of an asset with the objective of generating more income and wealth over a period of time. Investment decision making is an important skill, which can lead an investor to prosperity. By fusing psychology as well as micro-level investing (i.e., the decision-making process of individuals and organisations) and macro perspective (i.e., the role of financial markets), the study of investment behaviour seeks to understand and explain investor decisions. In this paper, an attempt has been made to study the investment behaviour of government employees in Telangana State. The focus is to examine the impact of various factors and biases including economic factors, emotional factors, financial knowledge, cognitive biases, herding factors, market factors and the risk-taking ability on the investor behaviour using path analysis. The findings of the study have a significant value for the researchers, policy makers and designers of financial products and services.

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Keywords: Investment Behaviour, Government Employees, Telangana State, Factors Affecting Investment Behaviour, Biases.