Paper Details

Individual’s investment choices and decisions that lead to these choices are highly influenced by an individual cerebral level of understanding. Often these decisions are based on the available information which make it easy to interpret the statistics and lead to decisions which makes an individual optimistic about his/her choices. But reality talks different. What you seek is not always true. Investor’s emotional intelligence, heuristics, risk tolerance, regret aversion etc. form the basis of individual’s choices. These decisions come from psychological and sociological behaviour that leads to irrational choices. Behavioural finance is a psychological concept and irrational decision choices of the investors is the basic idea of the whole concept. The research surveyed 110 respondents that form the sample size of the particular research. Respondents are asked questions to check their cerebral knowledge and behavioural approach in various cases of selecting their investments and their decision making for the same. The research analyses the attribute of emotional intelligence (EQ/EI), the heuristics and its biases involving quick decisions under pressure or need to make accurate judgements and the behavioural finance impacting decision of portfolio selection of an individual.

behavioural finance, portfolio, investors, decision making.