This paper seeks to examine the effects of generational differences, socio-economic status, and different modes of investments on individual investor risk-return trade-offs in Telangana. The main data collected in this research study was collected using a questionnaire from 180 respondents who were randomly selected and evenly divided across three generations, namely Generations Y/Z (aged 18-28), Generation X (aged 29-44), and Baby Boomers (aged 45-60). The statistical tools used in this study include descriptive statistics, one way ANOVA, Pearson correlation, and multiple regressions. In this research, the researchers have established that there exists a significant difference between generations in terms of their perception of risks (F=4.871; p=0.009), with the younger generations showing more risk-taking behaviour than their peers. Monthly income exerts negative impacts on risk-taking behaviour (r=-0.237, p=0.001), whereas educational background does not affect risk perception. Risk perception is not significantly affected by investment channels (F = 1.477, p = 0.211), such as social media, online sources and financial advice, suggesting that investors make investment decisions largely based on their own financial acumen. The results reveal that age and monthly income are the key factors influencing risk perception, with others having a limited impact. This research adds regional insights on investor behaviour from Telangana, India, which is relatively understudied.

Keywords—Risk–Return Perception,Generational Differences, Investment Behaviour, Risk Tolerance, Socio-Economic Factors, Monthly Income, Investment Channels.