A Study on Behavioural Finance in Investment Decisions of Individuals
Keywords:
Behavioural finance, investment decisions, individual investors, behavioural biases, financial behaviour, risk perceptionAbstract
Behavioural finance is an area of finance that explains how people’s thoughts, feelings, and behaviour affect to fund allocation approaches they make. Whereas traditional finance, which believes that investors always make rational decisions, behavioural finance recognizes that investment choices are often influenced by emotions, past experiences, the opinions of others, and personal thinking patterns. This research observe how these behavioural aspects affect to “Investment Choices of individual investors” in Sagara taluk, Shivamogga District. It also explores how mental factors, social influence, return and risk, behavioural tendencies, and investment-related features in shaping investment choices. The study obtained primary information from 110 respondents using a structured questionnaire, and the responses were examined using ‘Descriptive method Framework’ and Regression Analysis it used for assess a data, a observation demonstrate to financial attitudes has a considerable drives on money-related decisions, especially product or investment activity and behavioural biases showing the strongest positive consequence to judgement’s through by investors. Based on these findings, the research suggests creating greater investor awareness, encouraging careful and informed decision-making, providing clear and transparent financial information to assist them invest more confidently.
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