Behavioral Finance is an aspect of research that attempts to understand and explain how reasoning errors influence the investor's decisions. Investment preference mainly focuses upon how investor scrutinizes and acts on information to take investment decisions. The study tries to elucidate the very factor that is 'Cognitive psychology: the study of how people (including investors) think, reason, and make decisions'. It reveals that individuals do not always act shrewdly when it comes to making financial decisions and that their behaviors influences them in making investment choices. The sample size of the study is 61 employees of construction companies in Mysuru city. The sampling technique used was simple random sampling. Primary data was been used in the study, which was collected through structured questionnaire which is prepared based on behavioral finance and investment preference. Various statistical tools was employed for analyzing the data like Descriptive Statistics, t-Test Statistical Tool, Correlation Tool and Percentage Analysis. The study tried to understand the irrational decisions taken by the investors during the time of investing in a specific avenue. Through the study, it is discerned that construction employees of Mysuru city are aware about the various possibilities in investments and it is found that there exist a relationship between behavioral finance and investment preference among employees of construction companies. Using the principles of behavioral finance and investment preference the study tried to delve the psychological concept of 'individual attachment style', especially with reference to employees of construction companies and the wide range of investment avenues and their investment preference procedure. © 2018 IAEME Publication.