To Study The Impact Of Behavioral Biases On Investment Decision Considering Generational Cohorts Personality Trait And Risk Tolerance Of Investor In City Of Ahmedabad

Abstract

In former times investors had the option of investing in post office schemes, bank deposits, newlinegovernment bonds, and monthly income schemes, precious jewellery (gold, silver, Etc.), newlineReal estate in order to get higher returns of the investment. But with the establishment of newlinethe company form of organization investor started investing in shares, derivatives, mutual newlinefunds. In today s time financial services are more highly diversified than ever. This newlinediversification means that individual investors have a wider range of investment newlineinstruments and greater choice of how to invest their money. newlineBehavioral finance is the study that stimulus the psychological factors on investment newlinedecision of the investor. Behavioral finance is a new model of finance which helps investor newlineto seek to enhance the modern theories of finance by introducing behavioral aspect to newlineprovide explanation for why investors take irrational decision. Behavioral finance is very newlinepopular in stock market across the world for taking investment decisions. Behavioral newlinefinance is very helpful to understand why investor buy or sell or hold stock without doing newlinefundamental or technical analysis and behave like irrational investor in investment newlinedecisions. newlineThe current research is done find out impact of behavioral biases such as Heuristic bias newline(Representativeness Bias, Availability Bias, Overconfidence bias, Anchoring Biases, newlineGambler s Fallacy), Prospect Theory (Loss Aversion, Regret Aversion, Self- Control), newlineHerding Biases, Emotions and Mood, Parental Influence on individual investment decision newlinemaking across generational cohort (Generation X, Generation Y, Generation Z) with newlineregards to personality trait and risk tolerance of investor in city of Ahmedabad. Responses newlinewere gathered from 432 investors who owned stocks, mutual funds, or both and newlineRespondents should be residing in Ahmedabad and should be active investor. For this newlinestudy, data is gathered from primary and secondary sources. The data was analyzed using newlineSMART PLS-SEM newline