Exploring investment biases in the digital age: a qualitative study of biases in green and safe haven investments

Purpose The purpose of the study is to explore the dominant biases that retail investors experience in the digital era when investing in safe haven and green investments. These two investment options have become exceedingly popular among investors for different reasons, and the role of digitalisation is imperative in making these investment decisions. Understanding these nuances provides new insights for the dynamic paradigm in the investment arena. Design/methodology/approach The author applied interpretative phenomenological analysis, a qualitative technique which uses semi-structured interviews to dig deep into the psychological nuances. This methodology provides exploratory insights into unexplored topics, thus helping to contribute to the literature with plausible practical solutions. Findings Six primary themes surfaced based on various scenarios and identified dominant biases for green and safe haven investments, which include: market trend vs market opportunity; social norms vs self-beliefs; digital inclination vs fundamental analysis; risk vs profits; short-term vs long-term investments; and experienced vs new investors. Originality/value The study elucidates the nuances of investors’ experiences, emphasising the behavioural biases at play. It examines the rising popularity of green investments, driven by climate change-related sustainability challenges faced by businesses globally. This trend is contrasted with the appeal of safe-haven investment options prompted by the COVID-19 pandemic and the contemporary global political conflict. The study’s theoretical implications extend the literature on behavioural finance, while its practical implications offer valuable insights for investors, financial advisors, fintech developers and policymakers.