IMPACT OF BEHAVIORAL FINANCE ON PORTFOLIO INVESTMENT DECISIONS

Abstract

Investor’s assessment has been one of the key determinants of market developments. In this unique circumstance, examining the pretended by feelings like dread, insatiability and expectation, in taking care of business venture choices appeared to be significant. Behavioral Finance is an advancing field that reviews how mental components influence dynamic under vulnerability. This study tries to discover the impact of certain recognized financial biases, to be specific, Overconfidence, Representativeness, Herding, Anchoring, Cognitive Dissonance, Regret Aversion, Gamblers' Fallacy, and Mental Accounting, on the dynamic procedure of individual financial specialists in the Indian Stock Market. Essential information for examination was accumulated by appropriating an organized poll among financial specialists who were arranged as (i) young, and (ii) experienced. Results acquired by investigating an example of seventy four respondents, out of which twelve confessed to having endured lost in any event half in light of the emergency, uncovered that the level of presentation to the predispositions isolated the standard of conduct of youthful and experienced speculators. Gamblers’ Fallacy, Anchoring and Representative and Herding inclination apparently affected the young financial specialists essentially more than experienced speculators.