BEHAVIOURAL BIASES IN INVESTMENT DECISIONS AMONG YOUNG RETAIL INVESTORS

Abstract

This study investigates how behavioural biases affect India's young retail investors (aged 18–35), a population driving the nation's investment explosion via digital platforms and social media. Emphasising biases including overconfidence, herd mentality, and loss aversion, the study shows how these cognitive errors skew financial decisions in a setting characterised by high participation but poor financial literacy. By means of statistical analyses (Chi-Square, Kruskal-Wallis) and primary data from 100 respondents, the study exposes important trends: 67.3% of the students are 22–25-year-olds, while 62.4% have less than six months of investing experience. Only 36.6% have official investment training, which increases sensitivity to bias. Occupation/age and investment goals have clear correlations (e.g., students give wealth creation top priority; professionals concentrate on retirement). The results emphasise the need to foster logical decision-making for focused interventions—educational programs, biassed app designs, and policy changes. By closing these gaps, stakeholders can reduce risks to individual portfolios as well as to the stability of the market, so strengthening India's investor base for her changing financial environment.