Cognitive Biases in Investment Decisions

AbstractThe field of behavioural finance emphasizes how several biases greatly influence the behaviour of individual investors. The impact of behavioural biases on investment decisionmaking is examined in detail in the current study. Data from 100 investors was gathered for the study using a questionnaire. The data was analyzed using both descriptive and inferential statistical techniques. Four significant behavioural biases-overconfidence, anchoring, availability, and herding behaviour-were the focus of the study. In addition to highlighting the existence of these four biases in investment decisions, the study offers insightful information that helps financial intermediaries better advise their clients. Additional behavioural biases may be investigated in future studies to understand better how they affect investment choices.