Role of Behavioural Finance in Investment Decision Making
Description
Abstract: Behavioural finance studies the various psychological factors that affect the decision-making of investors. Behavioural Finance helps in understanding how people think while making investments. This study would help to know the investment mentality of the people while investing in various investment avenues. This study was done to know how some behavioural concepts like mental accounting, past experience, overconfidence, familiarity bias, etc. influence investment decisions. A structured questionnaire was prepared to collect primary data and descriptive research design has been used. The study's objective was to know the role of behavioural finance in making investment decisions, to know the factors that impact investment decisions and to study various theories and concepts of behavioural finance.
Keywords: Behaviour Finance, Investment Decision, Savings, Behavioural Bias