Abstract
The research fall in between the traditional finance and cognitive domain of financial decision making by applying the behavioural finance to practical decisions, having overall impact on the economy when applied to the whole community. Research proposed three hypotheses, 1st to test impact of Risk behaviour and demographics on financial decision making, investigate the correlation between financial sophistication and financial decisions and 3rd the impact of risk behaviour and demographics on financial decisions moderated by financial sohphistication. Survey questionnaire responses from 775 respondents has been used for analysis using Andrew Hayes process of moderation. Results indicated that Financial Sophistication significantly moderates the correlation between risk bahaviour and demographics, demographics were significantly and positively, while risk behaviour was negatively correlated to financial decisions, however when moderated by financial sohpistication the correlation of risk behaviour changes to positive indicating that even Risk seeker would also diversify investment when moderated by financial sophostication.
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