Investor psychology in virtual property investment: Risk perception and behavioural trends

Volume 1, Issue 1 (Apr-Jun 2025)

Authors: Rekha G. and Reshma P.S.

DOI: doi.org/10.64848/WMJ.1.1.2025.15-20

Page No: 15-20

Keywords: Virtual property investment, Risk perception, Herding behaviour, Impulsive decisions, Behavioural trends

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Abstract

Virtual property refers to the land that people can buy or sell in the metaverse. The paper analyses the key factors influencing investors’ risk perception, and the factors that motivates to invest in the virtual property. The paper also looks into the impact of demographic elements on the risk perception of investors and whether experience in investment plays a role in Investors’ herding behaviour and impulsive decision making. Employing questionnaires,86 respondents provided the primary data and the secondary data has been obtained from research papers, publications and journals. The study used ANOVA, Chi square testing, and Percentage analysis. It found that gender and educational qualification have no significant impact on the investors’ perception of risk. The findings reveal that the most significant factor influencing the investors’ perception of risk seems to be market volatility. The study also finds that the key factors that motivates the investors to invest in virtual property includes potential high returns followed by peer influence, technological interest and perceived prestige. The results suggests that the herding behaviour and taking impulsive decisions are similar among investors irrespective of their experience in investments.