A Study on the Impact of Behavioral Biases on the Investment Pattern of Indian Retail Investors with A Reference to Millennial Generation

Abstract

The development of a nation’s economy is significantly influenced by the capital market, which aids in wealth accumulation and capital raising. Today’s generation has a variety of financial instruments, which has given individual investors access to a wide range of investment opportunities. Behavioral finance is one the emerging topic in field of finance, it helps in understanding psychological behaviour of investors. This study focuses on understanding these behaviour and their impact on investment decision. A special reference is given to millennial generation as they are the maximum contributors of total retail investors. The objective of this study is to understand the investment pattern of these millennial retail investors and how they are affected by various behavioral biases. The study is analytical in nature. Research design used in this study is exploratory. The primary data is collected through a structured questionnaire from 100 millennial retail investors of Indian stock market. The collected data is analysed using different statistical tools. The findings of this study reveals millennial retail investors’ purpose of investment, factors considered before investing, amount of experience, area of investment, average return and impact of investment biases.