The theory of prospects and behavioural finance are two behavioural economics-based studies that provide light on how psychological biases influence investing decisions and cause market oddities. In this research, impact of demographic variables along with risk and return on investment behaviour has been analysed. The sample of 113 participants has been collected from the Kota City. The statistical techniques used in this research includes Chi-square test and regression analysis. The findings of this research, shows that only age and gender as the part of demographic factors, have significant impact on investment choice. On the other hand, only return has shown significant impact on the investment choice made by Kota’s investors.

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Keywords: Investment Behaviour, Risk and Return, Demographic Factors.