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Vol. 10 No. 1.0 (2021)
Scholar : National School of Leadership

Research Articles

An Analysis of Behavioural Biases in Investment Decision-Making

Published 2021-06-30

  • SABU E.G
    • ,
  • REGINA SIBI CLEETUS

SABU E.G
MAR IVANIOS COLLEGE

REGINA SIBI CLEETUS
MAR IVANIOS COLLEGE

Abstract

The conduct of individual investors is heavily influenced by a variety of biases that have been emphasised in the growing field of behaviour finance. As a result, this research is part of a larger effort to evaluate the impact of behavioural biases on investment decision-making on the National Stock Exchange. A questionnaire is created, and 243 investors' responses are gathered using survey responses. Inferential statistics and descriptive statistics were used in this study. Overconfidence, anchoring, disposition effect, and herding behaviour are the four behavioural biases examined in the current study. Overconfidence and herding bias have a considerable favourable impact on investment decisions, according to the findings. Overall, the findings show that individual investors have little expertise and are more likely to make psychological mistakes. Individual investment decisions are influenced by biases. Financial intermediaries will benefit from this research.

Keywords

behavioral biases, anchoring, disposition effect, overconfidence, individual investors

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