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Volume 8, Issue 1

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Volume 8, Issue 1



Chaandni Gautam, Dr. T. V. Raman, Dr. Vinod Kumar

  1. Amity Business School
  2. Sri Guru Nanak Dev Khalsa College, Delhi University

The growing discipline of behavioural finance has emphasized the various biases that play an essential role in an investor's investment decisions or behaviour. Often, the investors are unknowingly under the influence of a bias while making an investment decision that can impact the quality of their choices. Through this research study, an attempt has been made to identify the biases that affect the decisions of individual investors. Further, the study focuses on understanding the inter- relationship between the identified biases, namely overconfidence bias, loss aversion bias, and self- attribution bias. Finally, an effort has been made to determine the impact of the three biases on the investment decision. The data has been collected through a structured questionnaire from 243 respondents. It was concluded that there is a significant level of relationship between all the three identified biases. The biases and the investment decisions are positively correlated, which means they move in the same direction. There is a positive impact of the identified biases on the investment decision of individual investors. The study can be elaborated further to study the effect of other biases on the investment decision of individuals.


Behavioural Finance, Loss Aversion, Overconfidence, Self-attribution, Investment Decision Making.

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