A study of Behavioural Biases and Investment Decisions: An Empirical Analysis

Author(s)	Dr. PRIYANKA PRAKASH KHARARE, Ms. NEHA PRADIP LALWANI
Country	India
Abstract	Investors frequently use emotional and cognitive biases in addition to strictly rational analysis when making decisions. In order to investigate the crucial role that behavioural biases play in influencing investment decisions, this paper synthesizes previous research. This literature-based study examines the relationship between psychology and finance, highlighting important biases like overconfidence, loss aversion, anchoring, herding, and disposition effects, based on a variety of studies carried out in India and Nepal. The paper highlights the relevance of behavioural finance in both developed and emerging markets, with a focus on the behavioural patterns of millennial investors. The results challenge the presumptions of traditional economic theories by indicating that individual investment behaviour is intricate, multidimensional, and heavily influenced by psychological factors.
Keywords	Behavioural Finance, Investment Decisions, Financial Decision-Making, Investment Behaviour
Field	Business Administration
Published In	Volume 7, Issue 4, July-August 2025
Published On	2025-07-20
DOI	https://doi.org/10.36948/ijfmr.2025.v07i04.51573
Short DOI	https://doi.org/g9tz99

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International Journal For Multidisciplinary Research