BEHAVIOURAL BIASES AND THEIR EFFECT ON RETAIL INVESTMENT PERFORMANCE: INSIGHTS FROM BHOPAL DIVISION

This study investigates the influence of behavioural biases on the investment decisions of retail investors in the Bhopal Division, India. While conventional financial theories assume investors act rationally, there is increasing recognition that emotional and psychological factors—such as overconfidence, loss aversion, herding, and anchoring—often distort decision-making, potentially leading to less-than-optimal outcomes. Although awareness of these biases is on the rise, there remains a lack of substantial empirical research focused on their effects within the Indian context, particularly at a regional level. This research seeks to bridge that gap by analysing how such biases influence retail investment patterns in Bhopal, a region marked by socio-economic diversity. A mixed-method approach will be used, incorporating structured questionnaires based on a 5-point Likert scale. The study will survey 675 retail investors from the Bhopal Division, with data analysed through both descriptive and inferential statistical techniques. The objectives include examining the relationship between behavioural biases and investment choices, identifying demographicbased variations (such as age, gender, education, and income), and assessing the extent to which cognitive and emotional biases shape investment behaviour