Volume : III, Issue : VI, June - 2013

Applying Behavioural Finance by Analysing Investor Behaviour In Lucknow City

Dr. Vikram Bisen, Madhulika Pandey

Abstract :

Behavioural finance is part of finance that seeks to understand and explain the systematic financial market implications of psychological decision processes. It utilises knowledge of cognitive psychology, social sciences and anthropology to explain irrational investor behaviour that is not being captured by the traditional rational based models. Empirical research has shown that, when selecting a portfolio, investors not only consider statistical measures such as risk and return, but also psychological factors such as sentiment, overconfidence and overreaction. As a consequence, the purpose of the paper is to identify those psychological factors that play an important role in their decisions. It gives a glimpse to behavioral finance, describes the background, aim and objectives of the paper. It begins with a description of standard as well as behavioral finance, which often contradicts the modern financial theories.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. Vikram Bisen, Madhulika Pandey Applying Behavioural Finance by Analysing Investor Behaviour In Lucknow City Indian Journal of Applied Research, Vol.III, Issue.VI June 2013

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