A Study of Behavioral Biases in Mutual Fund Investment Decision Among Investors in Amravati City

The study explores the role of psychological and cognitive factors in shaping investor behavior. The primary objectives of the study are to identify the key behavioral biases influencing mutual fund investors, evaluate their impact on investment decisions and portfolio performance, and examine their association with demographic variables such as age, education, and income. A descriptive research design was adopted, and primary data was collected from 100 investors through a structured questionnaire. The collected data was analyzed using descriptive statistical tools such as percentages, averages, and frequency distributions. The findings indicate that biases such as overconfidence, herding behavior, loss aversion, anchoring, and recency effect significantly influence investment choices, risk perception, and timing decisions. The study concludes that improving investor awareness and financial literacy can help minimize irrational decision-making and enhance overall investment performance. Furthermore, the study emphasizes the importance of incorporating behavioral insights into financial planning strategies. It also suggests that investor training and awareness programs can reduce the adverse effects of biases. The findings highlight the need for better advisory services to support rational investment decisions.