The study is aimed at determining the influence of behavioural biases on financial risk propensity. It also attempts to examine the influence of financial risk propensity on investment decisions and the mediational role of financial risk propensity on the relationship between behavioural biases and investment decisions. A survey by questionnaire methodology is adopted to collect data from 203 respondents using the purposive sampling technique among the investors. The study has found that prospect, herding, and heuristics dimensions of behavioural bias have a significant impact on financial risk propensity, and in turn, financial risk propensity has a significant impact on investment decisions. The results of the study can help to develop more realistic investment valuation models in light of the revised risk-return expectations of investors who act contrary to the traditional concept of rational utility maximisers.