The Effects of Behavioral Biases on the Strategies and Decisions of Individual Investors

Abstract

Behavioral biases are another topic of this dissertation, examined through the perspective of some investors. The aim is to reveal the importance of such liked information for each and every investor. Lately, the topic of behavioral biases has become more popular since the number of individual investors has increased, and this trend is likely to continue for the years to come. These behavioral biases consist of behavioral finance theory, or the crossover among finance and psychology, that has developed prominent when investors and markets showed systematic irrationality. It is particularly many investors, given fraudulent qualifications and professional fronts, driven by these biases. Although it is clear that one must learn from one’s immortality, the decline indicates that the error process can be elongated. This study's goal is to enlighten individual investors about the difficulties they face, in particular, behavioral errors. The purpose is to investigate whether or not behavioral biases predispositions impact Indian investors' investing strategy and choices. Also, how psychosocial factors exhibited by individual investors compare and contrast with those from other countries.