ASSESSING INVESTOR PERCEPTION OF RISK AND RETURN IN GREEN FINANCE PRODUCTS: A STUDY ON SUSTAINABLE INVESTMENT DECISION-MAKING

Rohith N R; Hema Patil

doi:10.29121/granthaalayah.v13.i7.2025.6137

Authors

Rohith N R Research Scholar – VTU, Assistant Professor, Department of Management Studies, BGS Institute of Technology, Adichunchanagiri University
Dr. Hema Patil Research Scholar – VTU, Assistant Professor, Department of Management Studies, BGS Institute of Technology, Adichunchanagiri University

DOI:

https://doi.org/10.29121/granthaalayah.v13.i7.2025.6137

Keywords:

Green Finance, Investor Perception, Risk And Return, Sustainable Investment, Esg Funds

Abstract [English]

Increased stress on sustainability pushed the entry of green finance products such as green bonds, ESG funds, and other environmentally aligned financial instruments into the market. The present research explores investor risk-return perceptions from view perspectives toward the aforementioned green finance products for the purpose of understanding how these affect investors' continued sustainable investment decision-making. A structured survey and quantitative analysis were used to collect findings from individual and institutional investors concerning the financial viability, stability, and long-term growth potential of green investments. Major findings indicate that many investors consider green finance to provide competitive returns and, importantly, the capacity for resilience in times of market volatility. Concerns over regulatory clarity, greenwashing practices, and inconsistent ESG ratings remain paramount. The study also highlights the role of demographic as well as behavioral factors that influence risk-return assessments while placing awareness and financial literacy at the core of these considerations. Through this bridging of financial expectations with environmental consciousness, this research contributes to an understanding of what serves to either promote or deter considerations of investing in green finance. The implications of such a contribution will be useful to policymakers, financial institutions, and sustainability advocates attempting to stimulate responsible investment on a larger scale.

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