The present study examines the complex interconnection between behavioural biases, emotions, and investment decision-making process in India. The current research uses the concepts of behavioral finance in order to illustrate the influence of cognitive and emotional factors on the investment process, which leads to inefficient outcomes contrary to the classic finance approaches, which usually consider people rational. In total, 525 individual investors with various demographic characteristics and investment experience were selected for the study using a standardized questionnaire. The study uses descriptive statistics, correlation analysis, chi-squared tests, and binary logistic regression in order to examine the impact of overconfidence, loss aversion, herding behavior, emotional volatility, and financial awareness on risk tolerance. The research shows that key demographic factors such as age and gender have a significant effect on the investment process. Behavioural biases, such as overconfidence and loss aversion, are widely spread and have a significant effect on risk tolerance. Emotional factors, especially anxiety and fear, negatively correlate with the ability to take risks. In addition, the knowledge of the behavioral finance theory and consulting with financial advisers positively affect rational investment decision-making. Implications of the findings lie in the necessity for development of improved investor education initiatives which would include principles of emotional intelligence and behavioral finance. In addition, the findings have practical implications for financial advisors, regulators, and fintech developers when designing behavior-based investments solutions. Although the study had limitations in non-random sampling and using self-reporting data, this research is a good basis for further studies and demonstrates the importance of taking into consideration psychological factors in investment strategies in developing countries like India.