Investment involves the allocation of funds to generate a return on that capital. The process of allocating capital with the expectation of generating greater returns and the belief that these investments will ultimately yield a profit is known as investing. The main purpose of this study is to examine the different investment options available to investors in Arunachal Pradesh, as well as the factors residents of this state should consider before making investment decisions. It is important to recognize that the potential benefits and drawbacks of each investment option vary significantly from one another. A statistical analysis employing SPSS and percentage analysis was conducted to understand the challenges of decision-making processes of investors' investment patterns regarding their livelihoods. The study used purposive sampling methods to obtain data from a structured questionnaire with 284 respondents from the Itanagar capital region, East Siang, and Ziro. It also shows that investors prefer low-risk investments, where traditional investment avenue plays a significant role in overcoming the challenges faced by investors in Arunachal Pradesh. The study results have implications for investors and financial institutions, highlighting the need for customized financial education and investment options that meet the needs of investors in the area.