“A STUDY ON INFLUENCE OF BEHAVIOURAL BIASES AND THEIR IMPACT ON INDIVIDUAL INVESTMENT DECISION MAKING”

This analysis focuses at the ways in which behavioural and emotional biases affect individual investors’ decisions in today’s financial markets. It highlights key biases such as anchoring, overconfidence, herd behaviour and loss aversion alongside emotional factors like fear, greed, optimism, and regret. The research finds that many investors are influenced by these psychological and emotional elements, often resulting in irrational choices. To improve decision-making, the study recommends managing emotional responses, enhancing financial literacy and using rational strategies such as diversification. These findings deepen the understanding of actual investor behaviour and emphasize the growing importance of behavioural finance in guiding investment decisions.