This paper investigates the behavioral and psychological factors that shape investment preferences among Generation Z (Gen Z) investors in Ahmedabad, Gujarat. Drawing on primary data from 263 respondents aged 18–27, the study employs multiple regression analysis, chi-square testing, ANOVA, and Pearson correlation analysis to measure the influence of five key behavioral constructs — risk tolerance, overconfidence bias, herd behaviour, loss aversion, and emotional influence — on investment choices across five avenues: fixed deposits (FDs), mutual funds (MFs), shares/equities, gold, and Bitcoin/cryptocurrency. Grounded in Prospect Theory (Kahneman and Tversky, 1979), Heuristics and Biases Theory (Tversky and Kahneman, 1974), the Theory of Planned Behaviour (Ajzen, 1991), and Mental Accounting Theory (Thaler, 1985), the study reveals that Gen Z investment decisions deviate significantly from rational financial models. Statistical results confirm that all five behavioral factors significantly influence investment preferences, with emotional reactions and herd behaviour emerging as particularly prominent drivers. Risk-tolerant individuals gravitate toward equities and cryptocurrencies, while loss-averse respondents prefer safer instruments such as fixed deposits. The study contributes city-specific empirical evidence to the behavioral finance literature, filling a gap in Indian regional research, and offers actionable recommendations for investors, financial advisors, fintech platforms, and policymakers seeking to foster more rational financial decision-making among India's youngest investor cohort.

Keywords: Behavioral Finance, Gen Z, Investment Preferences, Overconfidence Bias, Herd Behaviour, Loss Aversion, Ahmedabad