A Study of Behavioural Finance on Investment Decision of Mutual Fund

Abstract

Behavioural finance is an important concept that explains how psychological factors influence investment decisions. This study focuses on understanding how investor behaviour affects mutual fund investment decisions. Traditional finance assumes that investors are rational, but in reality, investors are influenced by emotions such as fear, greed, and overconfidence. This research highlights major behavioural biases like herd behaviour, loss aversion, anchoring, and mental accounting. The study uses primary data collected through questionnaires and analyzes the relationship between behavioural biases and investment decisions. The findings show that behavioural finance plays a significant role in shaping investor behaviour.