28, February 2025

Behavioral Biases and Their Influence on Investment Decisions: A Theoretical Exploration

VOLUME-9; ISSUE-2; FEB-2025

Author(s): 1. Aditi Nema, 2. Dr. Mamta Manshani

Authors Affiliations:

  1. Chakravarti Rajagopalachari Institute of Management (CRIM), Barkatullah Vishwavidyalaya, Bhopal, M.P.
  2. Head of the Department, Oriental College of Management, Bhopal, M.P.

DOIs:10.2017/IJRCS/202502017     |     Paper ID: IJRCS202502017


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This paper discovers the impact of behavior prejudices on financial investment decisions, stressing the emotional aspects that result in illogical economic options. Behavior financing tests the traditional sight that markets are efficient and that capitalists are reasonable. Instead, it assumes that psychological elements considerably affect decision-making. Common prejudices such as insolence, herding habits, loss hostility, and verification predisposition lead capitalists to make choices that differ rationality, influencing their financial end results. With a comprehensive review of existing literature, this research aims to establish a theoretical framework for recognizing just how these biases influence investor actions and market dynamics. The evaluation likewise highlights the mechanisms by which these predispositions manifest, stressing their relevance fit financial investment strategies. The findings emphasize the need for both capitalists and economic advisors to identify and reduce the effects of behavior prejudices to enhance decision-making effectiveness. By adding understandings into the intricacies of capitalist psychology, this expedition aims to advance the field of behavioral money and educate techniques for better monetary decision-making.

Behavioral, Biases, Cognitive, Decision-Making, Decisions, Economics, Emotional, Finance, Investor, Market, Psychological, Risk, Strategies, Tolerance

Aditi Nema, Dr. Mamta Manshani(2025); Behavioral Biases and Their Influence on Investment Decisions: A Theoretical Exploration, International Journal of Research Culture Society,    ISSN(O): 2456-6683,  Volume – 9,   Issue –  2.,  Pp.107-114.        Available on – https://ijrcs.org/

 

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