AN ANALYSIS OF BEHAVIOURAL FINANCE AND ITS INFLUENCE ON INVESTMENT DECISION

This research delves into the fascinating realm of Behavioural Finance, exploring its significant influence on investment decision-making among residents in India's National Capital Region (NCR). By drawing on insights from relevant studies, this work seeks to uncover the intricate link between human behaviour and financial decision-making within this demographic. The study begins by examining the unique financial behaviours of investors in the region, aiming to identify the key investor profiles that shape the investment environment. As a multidisciplinary field combining elements of psychology, sociology, and finance, Behavioural Finance provides the primary framework for this exploration. The research distinguishes between its micro and macro perspectives: the detailed analysis of individual behavioural traits of investors and the broader identification of inefficiencies in the market. Recognizing the pervasive impact of behavioural biases on investment behaviours and decisions, this study offers an in-depth review of diverse research within the Behavioural Finance domain. It sheds light on how human psychology and social dynamics interact with financial decision-making, highlighting the crucial role of Behavioural Finance in contemporary financial practices. In an era where financial markets are not merely governed by rationality but are also shaped by complex human behaviours, this research offers valuable insights into the dynamics of Behavioural Finance. By illuminating the distinct investment choices, the study aims to deepen our understanding of the factors influencing these decisions, ultimately equipping investors and financial professionals with more informed decision-making strategies.