Impact of Behavioural Biases on Investment Decisions of Retail                  Investors: Evidence from Indian Capital Markets

Author(s)	Dr. Akhilesh Kumar Dixit, Pankaj Singh
Country	India
Abstract	Retail investors often believe they make decisions based purely on logic, numbers, and market signals. But in reality, emotions and psychological tendencies frequently shape how individuals buy, sell, or hold financial assets. This research paper explores the role of behavioural biases, in influencing the investment decisions of retail investors, in the Indian capital markets. The study focuses on commonly observed biases such as “overconfidence, herd behaviour, loss aversion, mental accounting, and anchoring”. By connecting these biases to real patterns seen among Indian investors, the paper highlights how psychological factors quietly guide financial choices. The findings suggest that many retail investors tend to follow instincts, peer actions, or emotional comfort, even when data points in a different direction. The study concludes that recognising these biases can improve investment decision-making and reduce errors that lead to poor financial outcomes.
Keywords	behavioural finance, investment decisions, retail investors, Indian capital markets, behavioural biases.
Field	Business Administration
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-18
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.63780

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