• SAVITHA P R

Abstract Traditional financial investment theories assume investors usually take rational behavior into account. Though the trend has shifted, investor behavior now plays a significant role in influencing investment decisions. The present study aims to explore how investment decision-making is influenced by psychological biases. The study covers five prime biases to test the relationship with personal investment decisions. The sample size considered for the study is only 200 investors in Mysore city. The Data is collected from the respondents through the structured questionnaires. Descriptive statistics, correlation, and a multilinear regression model were used to analyze and explore the relationship between bias and individual investment decisions. The result of the study revealed that there exists a strong positive correlation between personal investment decisions and regret bias and personal investment decisions and loss/risk aversion and a moderate correlation with personal belief bias, and overconfidence bias. It is also explored that there is a lower positive correlation between personal investment decisions and opportunity bias.

Behavioural Finance, Behavioural Bias, Investment decisions, Personal belief bias, Overconfidence bias, regret bias, Risk aversion bias, Opportunity bias.

"Impact of Behavioural Finance on Investment Decisions – An Empirical Study with reference to Mysore City", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 12, page no.g558-g565, December-2022, Available :http://www.jetir.org/papers/JETIR2212685.pdf

"Impact of Behavioural Finance on Investment Decisions – An Empirical Study with reference to Mysore City", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 12, page no. ppg558-g565, December-2022, Available at : http://www.jetir.org/papers/JETIR2212685.pdf