IMPACT OF BEHAVIORAL BIAS ON THE INVESTMENT DECISION MAKING OF INVESTORS

Abstract

Abstract: The main aim of the paper is to present a brief on the role of various psychological factors in the investment decision making process. According to behavioral finance, investors make cognitive errors that leads to wrong decisions. This study will help to understand the nature and reasons for certain behavioral biases. Thus helping the investor to avoid problems and invest better. It has put up a light on comprehensive view of various behavioral biases that affects the investment decision making of the investors, identified from literature available. To mitigate the effects of bias, it is important for investors to set up processes for a logical decision making.