Capital markets and institutions play a crucial role in the acceleration of the pace of growth in a developing economy like India. Today the stock markets in India are scaling new and all-time highs. The Foreign Institutional Investors (FIIs) and the domestic investors, mainly the mutual funds, appear to have been showing their persistent faith and unshaken confidence in Indian stock markets. The investors’ confidence and faith in stock markets is an essential prerequisite for the smooth, steady and stimulating performance of the stock markets in any country. Moreover, the spread of investment culture among the small and retail investors, especially among the rural investors also goes a long-way in the sustained development of stock markets and helps in capital formation in the country. Further with the advent of economic reforms, especially the reforms in the stock markets, the subject of ‘investor protection’ has been subjected to much debate and increased emphasis. Today, the small and rural investors are more exposed to investments risks because of insider trading, price rigging by organized brokers, manipulative and fraudulent practices of market intermediaries. It is in this context, the present work entitled “Investment Behaviour and Risk Management” from the author is a timely and a notable contribution to the existing body of knowledge.