Cultural Variations in Financial Behaviour
Why Indian investors experience risk, trust, and advice differently
This paper explores how cultural context shapes financial behaviour, risk perception, trust, and decision-making — with a specific focus on India.
Drawing on behavioural science, cross-cultural psychology, and financial practice, it explains why models and assumptions developed in Western markets often fail to translate cleanly into Indian advisory contexts.
The paper is intended for financial advisers, distributors, platform designers, and institutions seeking to build advice processes that are culturally aligned, behaviourally realistic, and regulator-aware.
Key Insights
Indian investors prioritise capital protection, family obligation, and long-term security.
Risk is experienced emotionally and socially, not just numerically.
Trust is built through explanation quality, consistency, and perceived care.
Western profiling tools require cultural adaptation to remain valid in India
Behavioural suitability improves when advice reflects family context and lived experience.