Influence of Behavioral Finance in Making Investment Decisions

Abstract

Humans operate logically while making financial decisions, according to numerous conventional financial theories. Various studies have revealed, however, that there are instances in which human behavior is impacted by moods and emotions, causing individuals to react in an unexpected or unreasonable manner, impacting their decision making. Whether an individual’s demographic and psychographic features impact behavioural investment decision making is an uncharted field. This study examines an important demographic variable, gender, and aims to determine how much the variable impacts investment decision making. The study’s goal is to determine if gender differentiation influences investing decisions and to what degree men and women investors are impacted by behavioural factors. The study has significance for the financial sector since it aims to assess how behavioural and psychological aspects impact various investors based on their basic gender distinction, and it will also assist to design the portfolio depending on their investing preferences.