A STUDY ON BEHAVIORAL BIASES IN INVESTMENT DECISION

Abstract

This research prospects how an individuals behavioral biases affect investment decisions. Behavioral biases are rational tendencies that influence the decisions of the people, especially in fields like investing. This study does a qualitative investigation of behavioral biases in investing decisions. Investors frequently make irrational judgments as a result of behavioral biases that originate from intellectual and emotional reasons. This research tries to discover prevalent behavioral biases influencing investing choices and comprehend the effect they have on financial results by combining findings from prior studies. The literature analysis stresses the major biases that influence investment behavior, including herd mentality, loss aversion, and overconfidence. The study emphasizes how crucial the intent is to identify and counteract these biases to enhance financial outcomes and investment decision-making. KEYWORDS: Behavioral biases, investment decisions, qualitative investigation.