Download or read book A Study on the Behavioural Aspects of Retail Investors for Investment Decision Making in Telangana State written by Jhansi Rani Boda and published by . This book was released on 2017 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Objective - Investment is the commitment of funds which have been saved from the current consumption with an expectation of favorable future returns. Investment behavior is concerned with choices made about the purchase of a significant number of securities for an individual or institutional account. Individual investment behavior is relatively a new area of research in behavioral finance. This study aims to identify the various behavioral patterns of retail investors and their investment decision making in the newly formed Telangana state of India.Methodology/Technique - Data were collected from a sample of 200 retail investors via a structured questionnaire. Factor analysis was then conducted to critically identify the behavioral patterns of the retail investors.Findings - The findings of this study indicate that the two behavioral factors of Heuristics and Prospect have significant impact on the investment decision making attitudes of the retail investors.Novelty - As a newly formed state in India, the Telangana state provides potential investment opportunities for retail as well as institutional investors. It is thus, highly imperative to explore how retail investors make investment decisions especially in the newly formed Telangana State in India.

Download or read book Impact of Investment Decisions on Retail Investors written by Suyam Praba and published by Meem Publishers. This book was released on 2023-07-21 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Delves into the realm of financial psychology, focusing on the investment choices made by retail investors and the subsequent effects on their investment patterns. The research aims to explore the behavioral aspects that influence decision-making in the realm of investments and how these choices shape the overall investment strategies adopted by individual retail investors. It utilizes a comprehensive research framework to analyze the various psychological factors, cognitive biases, and emotional responses that drive investment decisions among retail investors. By examining these behavioral aspects, the researchers aim to uncover the underlying reasons behind specific investment patterns and their outcomes. Through a combination of surveys, interviews, and data analysis, the study seeks to provide valuable insights into the motivations, risk tolerance, and decision-making processes of retail investors. Additionally, it aims to identify common behavioral biases that might lead to suboptimal investment choices, thereby contributing to the body of knowledge in both finance and psychology. Ultimately, the research endeavors to offer recommendations and strategies to enhance the investment decision-making process of retail investors. By understanding the impact of psychological factors on investment behavior, the study aims to empower individual investors to make more informed and rational choices, ultimately improving their financial outcomes and overall investment performance. This study is a valuable contribution to the field of behavioral finance, bridging the gap between psychological insights and investment practices in the context of retail investors.

Download or read book Determinants of Retail Investors Behaviour and Its Impact on Investment Decision written by Abey Francis and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: According to economic theorists, investors think and behave “rationally” when buying and selling stocks. Generally investors are presumed to use all available information to form “rational expectations” in investment decision making. In reality, individual investors do not think and behave rationally. To the contrary, driven by greed and fear, investors speculate stocks between unrealistic highs and lows. They are misled by extremes of emotion, subjective thinking and the herd mentality. Indian stock market is considered to be highly volatile, sensitive and reactive to unanticipated shocks and news. At the same time, Indian stock market is resilient and it recovers soon after shocks. The role and importance of individual investors and their trading behaviour is not properly discounted. It is believed that trading behaviour of individual investors rarely influences the stock prices. The paper intends to analyse the determinants of the individual investor behaviour of Indian stock market and factors affecting their investment decisions. An empirical study is conducted to analyse the investment behaviour and decision making style of individual investors. Analytical Hierarchy Process (AHP) is used to find the relative importance of different behavioural traits of the investors.

Download or read book Investment Behaviour written by Arup Kumar Sarkar and published by Emerald Group Publishing. This book was released on 2018-07-16 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investment Behaviour explores the relationship between competing demographic factors, personal awareness and perceived attitudes to risk in shaping the behaviour of individual investors in the stock market. By so doing, the book facilitates the formulation of more individual-centered financial policy.

Download or read book Assessing the Linkage of Behavioural Traits and Investment Decisions Using SEM Approach written by Dr.Lakshmi P. and published by . This book was released on 2015 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: The goal of this research is to investigate to what extent long term and short term stock investors share different behavioural characteristics. A structural model is employed to compare the traits of the investors and examine how investment decision making and behavioural biases are related, as well compare the relative differences of behavioural biases such as Herding, Social Contagion, Representative Heuristic, Over Confidence, Risk Aversion, Disposition Effect and Cognitive Dissonance. Identification of behavioural traits commonly associated with investment tenure aids in providing opinions and framing trading strategies. The psychological impact of investment decision making among investors is studied through a sampling survey of 318 valid respondents from voluntary retail investors in India between Jan 2012 and May 2012. Based on structure equation modelling [SEM], path analysis is performed on how investment decision making and the proposed behavioural biases are related. Analytical results indicate that the structural path model closely fits to the sample data, implying the role of behavioural biases in investment decision making among individuals. Our results further demonstrate that long term and short term investors significantly differ in behavioural traits.

Download or read book Behavioural Influence on Investment Decision by Residents Non Residents of India written by Dr Gayathri T and published by Archers & Elevators Publishing House. This book was released on with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Study on Retail Investors Behavior written by P G K. Murthy and published by . This book was released on 2019 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial world has been changed greatly since last 20 years. Individual investors have started to participate actively in the investment activities. It has become very crucial to understand the investors' behavior for their investment decision. This study examines the investors' behavior with the help of different behavioral finance theories viz. overconfidence, disposition effect, conservatism, cognitive dissonance, rationality and regret theory. A sample survey of 130 investors from the Anand, Petlad and Khambhat (Cities of Gujarat, Anand District) was conducted during February to April 2012 with the help of structured questionnaire. The study found that investors are irrational with different investment options, investors were found overconfident. The findings also support the disposition effect theory and regret theory.

Download or read book THE INFLUENCE OF BEHAVIORAL FACTORS IN MAKING DECISION AMONG INVESTORS IN KLANG VALLEY written by LEE JIA WEN (TP041343) and published by . This book was released on 2019 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: Extreme volatility has plagued financial markets worldwide since the 2008 Global Crisis. Investor sentiment has been one of the key determinants of market movements. In this context, studying the influence of behavioural factors in making investment decision among investors seemed important. Behavioural finance is an evolving field that studies how psychological factors affect decision making under uncertainty. This thesis seeks to find the influence of certain identified behavioural finance concepts, namely, heuristic bias, herding behaviour and prospect factor on the decision-making process of individual investor in Klang Valley, Malaysia. This was a quantitative research and using questionnaire method. Primary data for analysis was gathered by distributing a structured questionnaire among investors. Result obtained by analysing a sample of 160 respondents. The finding revealed that overconfidence and anchoring bias of heuristic bias, trade volume of herding behaviour and regret aversion of prospect factor has a significant impact on investment decision of investor in Klang Valley.

Download or read book A Study on Individual Investors Bias towards Investment Decision Making through the Concept of Neurofinance in NSIC Ltd written by Vara Lakshmi Thavva and published by GRIN Verlag. This book was released on 2021-08-09 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2020 in the subject Business economics - Investment and Finance, grade: 9.0, , course: MBA, language: English, abstract: The objectives of the study are to determine the psychological factors which play an important role behind the individual investors’ bias, in order to understand the influences of the individual investors’ bias, which can help the individual investors to avoid pitfalls while making investment decisions, and to create a literature on the research field of neurofinance. Investors’ bias plays an important role in investment decision making because the bias is the combination of emotional and psychological factors which make the investor not to rely on the available information which certainly leads the investor to the irrational manner towards the investment decision making. Finance also looks at the investors and notes that they are not behaving according to the theories like prospect theory. A new trend in the finance, which is certainly in an embryonic stage and is termed as“Neurofinance”. Neurofinance is the mixture of finance, psychology and neurosciences. Neurofinance uses the insights of psychology such as knowledge about the bias to understand and possibly correct mistakes committed by the individual investor towards their investment decision making. It tries to make sense of the facts on the investors’ bias towards investment decision making which indeed makes them behave irrational towards investment decision making.

Download or read book An Empirical Analysis of the Behavioural Factors Affecting Individual Investment Decisions written by Shilpi and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Behaviour finance is an evolving field that studies how behavioural factors affect investment decision making by the individuals. This study attempts to identify the behavioural factors that influence investment decisions of the investors. Hypotheses were formulated to study the behavioural factors and the variation in these factors across different demographic variables. Behavioural factors such as herd behaviour, overconfidence were identified using factor analysis. Socially responsible investing is a new form of investing. Awareness among the investors about socially responsible investing was also assessed separately in the study. Socially responsible investing (SRI) is any investment strategy which seeks to consider both financial return and social good while making investment decisions.

Download or read book The Impact of Psychological Factors on Investment Decision Making of Investors written by Yamini Gupta and published by . This book was released on 2016 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the traditional financial theory, the decision makers were assumed to be rational and stock markets were thought out to be the perfect markets i.e. whatever information is available in the market is fully reflected in share prices and nobody can earn extra profits just by having insider's information. On the contrary, modern theory proposes that investors' decision-making is not always propelled by these thoughts. In fact, the decisions taken by them are unpredictable sometimes. Moreover, there are many studies which have shown that investors' decisions are influenced by numerous psychological factors. The present research aims at determining the various psychological factors that have an influence on investor's decision making in Indian stock market. In the present article, data was collected from 380 retail investors who are further segregated in two groups on the basis of their investment experience. Four behavioral biases namely loss aversion bias, regret aversion bias, herding bias and anchoring bias are considered and analysed using discriminant analysis and chi-square test. It was found that herding bias was exhibited by both the groups in an equally likely manner. Further, experienced investors were found to be more prone to loss aversion bias, regret aversion bias and anchoring bias as compared to that of less experienced investors.

Download or read book Behavioral Biases in the Decision Making of Individual Investors written by Professor Ravindra Jain and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In earlier research, it has been discovered that contrary to the assumptions and theories of conventional finance, many irrational behaviors related to investment judgment occur in real life. In this paper, we have made an extensive review of various behavioral biases that affect investment decision making of the individual investors. Extant research indicates that individual investor makes his/her investment decision under the influence of some combination of behavioural biases, which mainly include disposition effect, mental accounting, investors' overconfidence, representativeness, narrow framing, aversion to ambiguity, anchoring, availability bias, and regret aversion. Under the influence of some such biases or combination of the same, individual investors often make irrational investment decisions. And therefore, individual investors, in aggregate, earn poor long-run returns. These aspects have been highlighted in this paper. Potential solutions to mitigate the adverse impact of behavioral biases on decision making of individual investors have also been discussed. Finally, future research direction relevant to such an area has been indicated in this paper.

Download or read book The Biases Influencing an Investor s Behavior in India written by Soumita De and published by . This book was released on 2016 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study aims to investigate the impact of behavioral biases on the investor's financial decision making with special focus on three biases, namely confirmation bias, loss aversion and endowment bias. Investors are always assumed to be rational thinkers as per the traditional economic theories but the volatile market behavior has challenged the efficient market hypothesis. Behavioral finance is a newly developed approach in response to the difficulties faced by the traditional investors. Investment markets are becoming increasingly risky making the investors behave differently upon different market dynamic forces. Recent researches on individual investor's behavior have shown that people do not act rationally while making decisions, rather several factors influence their decisions whether it is related to stock market or personal financial investments. It is necessary to understand the major cause of irrationality in the markets. Empirical data has been collected through administrating a questionnaire and this data is used to investigate whether investors' decision making is affected by the three biases. The study with the help of graphical representation of the data and proportionality Chi square analysis (goodness of fit) using SPSS software concludes that the biases have a direct impact on the decisions taken by the investors. This paper attempts to have an insight about the key factors influencing the behavior of the investors with respect to the demographics in relation to the investments and their personal financial decision making process. The findings of this study will be useful for investors to understand the common behaviors, identify their reactions while taking decisions for better returns and take corrective measures to not fall into the trap of the behavioral bias. It is also helpful for the financial planners to device suitable asset allocation strategies for their clients.

Download or read book Behavioural Factors and Stock Investment Decision Making The Moderating Role of Gender written by Meerakkuddy Siraji and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this study is to investigate the impact of most commonly used behvioural factors namely anchoring, disposition effect, home bias, herding, overconfidence and the risk perception on investment decision making and to check that either gender interact with the said relations through theoretical proposal and then verification through empirical evidence of individual investor's stock investment decision making at Colombo Stock Exchange (CSE).For this purpose, the primary data were collected from 405 individual investors through listed stockbrokers at the Colombo Stock Exchange and analysed using Confirmatory Factor Analysis (CFA) and Structure Equation Modelling (SEM). The survey evidence shows that, of six behavioural factors, viz, anchoring, disposition effect, overconfidence and risk perception influenced the investment decision making of individual investors. It further explores that gender has a significant moderation with respect to anchoring, disposition effect, herding, overconfidence, risk perception, and stock investment decision making. This study is first of its kind to quantify the moderating effect of male and female differences of irrationality caused by behavioural factors on stock investment decision making. The results of this study are basically useful for individual investors, investment managers, and also for policymakers.

Download or read book Irrational Behavior of Households on Investment Decision Emotional and Social Status Behavior written by P. Vijayalakshmi and published by . This book was released on 2020 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: Every human has a unique mindset in performing regular activities. Often changing environmental situations and traditional follow-ups influence the humans by their emotional and social cultural factors. The authors of the research paper made an attempt to study irrational behaviour of household investors on investment decisions. The authors adopted purposive sampling method in the study of irrational behaviour of households with respect to emotional and social status bias. The primary data is collected with the help of a well structured close-ended questionnaire which consists of necessary parameters to measure the emotional and social status biases. The collected data were analysed with the help of the statistical tools packages like Statistical Package for Social Science (SPSS) and Analysis of Movement Structure software for validating the theoretical assumptions and derived at the valid results from the data. The study hence done found that emotional and social status biases influence the decision making processes and the path analysis confirmed that the emotional and social behavioural biases had significant impact on the investment decision of individual household investors.

Download or read book Determining the Factors Affecting Individual Investors Behaviours written by Sevilay USLU DİVANOĞLU and published by . This book was released on 2019 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: Behavioral finance is precisely non-rational behavior of market investors. Behavioral finance theory shows that investors make investment decisions rationally, by intermittent change from the past and that investment decisions can be taken under the influence of some psychological factors. This theory shows how human behaviors are effective in the functioning of investment decisions and that investment decisions can be made in nonrational behaviors. People are determined to invest under the influence of emotions and personal intuitions with models based on rational behavior and investment behaviors. Whether individuals are rational in the economic decision-making process is one of the key points of debate and it seems quite complex to be able to demonstrate this. This study will focus on individuals (investors), one of the economic decision makers. Socio-economic factors, as well as psychological factors, influence the risk that investors perceive in the decision-making process of individual investors. The purpose of this study is to identify stimuli that affect individual investors' drivers of financial investment decisions and to consider it in terms of behavioral finance. For this purpose, an individual investor questionnaire has been determined in the field which has previously been validated and reliable. This questionnaire was applied to 200 employees working in private and public banks operating in Aksaray and 177 people were provided feedback. In the case of Aksaray, it has been determined which stimulants are under the influence of predictions, estimates, emotions, personal intuitions, psychological and sociological behaviors of investment decision-making individuals.

Download or read book Retail Investors and Industry based Style Investing written by Thanyaphat Niruthisard and published by . This book was released on 2016 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates if retail investors in the Stock Exchange of Thailand pursue industry-based style investing using transaction data during 2004-2013. It finds the coordination in retail investor demand at the industry-level. In contrast to the prediction of the style investing model, retail investor industry demand is negatively related to past industry returns. No relationship between retail investor industry demand and subsequent industry returns is found across all time horizons. In addition, there is evidence that after choosing to invest in an attractive industry, retail investors prefer to invest in small-cap stocks more than large-cap stocks. These findings suggest that retail investors' investment decisions are influenced by industry-wide categorization, and they make their buying decisions follow a two-step decision-making process.