IMPACT OF BEHAVIOURAL BIASES IN CHOOSING INVESTMENT AVENUES: AN EMPIRICAL STUDY
Rachit Agarwal
Assistant Professor, Sunder Deep College of Management & Technology
Abstract
The behaviour of an individual investor is expansively influenced by different biases that came into limelight in the rising regulation of behaviour finance. In finance, behavioural finance is the latest regulation that studies the cognitive psychology of the decisions that are taken by an individual related to money. The theory of standard economic had evolved this in its response and it has the ability to presume that people are sensible, prefers low risks investments and maximises their profits. In real time scenario it is seen that people are not that sensible when they make their decisions during the investment process. There are different behavioral biases factors that influence the investors while choosing their investment avenues. The objective of the study is to know the behavioural factors that affect the decision of the Investors and their impact on the investor in choosing the investment avenues. A sample of 273 respondents were taken in which Investors from different sector were surveyed with the help of standard questionnaire. Mean and t test was used to get appropriate results. It is found that there are different behavioral factors such as mood, emotional, heuristic, personality and overconfidence that influence the investors while making his investments and all the behavioural biases has a significant impact on the process of choosing the investment avenues.
Keywords: Behavioural Biases, Behavioural Finance, Investment Avenues, Investors
Journal Name :
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EPRA International Journal of Multidisciplinary Research (IJMR)
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Published on : 2021-04-11
Vol | : | 7 |
Issue | : | 4 |
Month | : | April |
Year | : | 2021 |