Proceedings of the International Conference on Policies, Processes and Practices for transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)

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Risk Tolerance and ESG Priorities: A Comparative Analysis of Retail and High-Net-Worth Investors’ Behavior in Sustainable Investing

Authors
Dev Kumar1, Swati Narula2, *, Aarti Chopra3
1Institute of Management Studies and Research, Maharshi Dayanand University, Rohtak, Haryana, India
2Delhi School of Business, Vivekananda Institute of Professional Studies -Technical Campus, Delhi, India
3Department of Management, Poornima University, Jaipur, India
*Corresponding author. Email: swati.fin@gmail.com
Corresponding Author
Swati Narula
Available Online 10 November 2025.
DOI
10.2991/978-94-6463-894-3_13How to use a DOI?
Keywords
Sustainable investment; retail investors; high-net-worth investors; ESG criteria; risk tolerance; investment preferences
Abstract

This research aims to address the significant differences in sustainable investing practices and preferences between retail investors and high-net-worth (HNW) investors, as well as their impact on stakeholders. Using a quantitative methodology—including confirmatory factor analysis, reliability testing, descriptive statistics, and inferential analysis—the study highlights notable contrasts between the two groups. Findings reveal that HNW investors tend to accept higher levels of risk, favor longer investment horizons, and place stronger emphasis on environmental, social, and governance (ESG) factors in their decision-making. Additionally, demographic attributes play a key role in shaping ESG priorities. The results stress the need for tailored sustainable investment products and offer broad recommendations for financial advisors, investment institutions, and policymakers. Future research should focus on qualitative explorations of investor motivations and longitudinal studies to track the evolution of sustainable investment practices across different investor segments. The study reinforces the critical role of investment in driving economic growth. By synthesizing the sustainable investment behaviors of retail and HNW investors alongside policy frameworks, it emphasizes how investor behavior can serve as a strategic tool for advancing national sustainability and broader economic development. In particular, it illustrates how varying ESG preferences, risk appetites, and investment horizons can inform the design of targeted incentives and regulatory measures.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Policies, Processes and Practices for transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
10 November 2025
ISBN
978-94-6463-894-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-894-3_13How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Dev Kumar
AU  - Swati Narula
AU  - Aarti Chopra
PY  - 2025
DA  - 2025/11/10
TI  - Risk Tolerance and ESG Priorities: A Comparative Analysis of Retail and High-Net-Worth Investors’ Behavior in Sustainable Investing
BT  - Proceedings of the International Conference on Policies, Processes and Practices for transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)
PB  - Atlantis Press
SP  - 180
EP  - 191
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-894-3_13
DO  - 10.2991/978-94-6463-894-3_13
ID  - Kumar2025
ER  -