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ISSN 2063-5346
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A CONCEPTUAL MODEL OF FACTORS INFLUENCING INDIVIDUAL INVESTORS’ INVESTMENT DECISION-MAKING PROCESS WITH INCLUSION OF BEHAVIOURAL FINANCE

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Ms. Komal Chaudhary1*, Dr. Vinita Mittal2
» doi: 10.48047/ecb/2023.12.si5a.0429

Abstract

An investor expects to earn a return or capital gain from the investment whilst being aware of the risks involved. Howbeit, it is not only the investment’s risk and return that affects the investor’s preferences. Among various considerations, behavioural finance is one of the several pertinent factors that might affect an investor's choice as the metric of investors would manifest change with the insertion of this concept in investment decision-making. Investors' investing decisions, mostly, are less rational because they incorporate behavioural facets that might lead the investors to drift from rational decisions and effectuate behavioural bias. Present paper intents to proffer a conceptual model of factors influencing individual investors’ investment decisionmaking with the inclusion of behavioural finance. The model would attempt to present the investment decisionmaking process in a simplified and comprehendible manner and could be used to bridge a gap between behavioural decisions and anomalies and market affairs.

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