• Archana T A
• Chaitra Lakshmi P S

This study discovers the incorporation of behavioral finance theories into portfolio management strategies.Behavioral finance combines knowledge from economics and psychology to comprehend how social influences, cognitive biases, and human emotions affect financial judgment. Behavioral finance recognizes that real-world investors frequently depart from rationality, producing less-than-ideal results in contrast to conventional investment which assume with the intention of investor are completely coherent The investor psychology which defines the emotional and cognitive elements that affect an investor's decision-making process as well it investigates how a person's views, attitudes, and behaviors in financial markets are influenced by psychological characteristics, emotions, and life experiences. The heuristics system helps to analyze the standards and en route for make decisions quickly, particularly in situations that are intricate and unpredictable and when there isn't enough time or complete information for in-depth examinations. The robustness of portfolios and investment decisions are significantly impacted by this. Traditional finance models adopt smartness among investors, yet behavioral finance encounters this hypothesis by including psychological insights, logical analysis, risk and return assessment, try to maximize returns into financial decision-making, also consider rational investors. This paper scrutinizes the impact of prejudices and satisfies investor behavior and examines how these behaviors affect asset allocation and risk management in portfolio structure. Illustration upon present literature and a qualitative method, the paper classifies key behavioral favoritisms, their inferences on portfolio presentation, and how planned frameworks can moderate these favoritisms. The research accomplishes that combination of behavioral perceptions into conventional portfolio strategies improves investment decision-making and long-term performance.

Keywords: Behavioral finance, portfolio management, investor psychology, heuristics, biases, risk management, and investment strategies.

"Behavioral Finance's Impact on Investment Strategies and Portfolio Robustness", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 7, page no.g484-g491, July-2025, Available :http://www.jetir.org/papers/JETIR2507669.pdf

"Behavioral Finance's Impact on Investment Strategies and Portfolio Robustness", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 7, page no. ppg484-g491, July-2025, Available at : http://www.jetir.org/papers/JETIR2507669.pdf