The Impact of Behavioural Biases on Professional Investment Decision-Making: An Empirical Study in the Indian Context

Abstract

This study investigates the impact of behavioral biases on professional investment decision-making in the Indian financial market. Through a structured questionnaire administered to professional investors, the study identifies prevalent biases such as overconfidence and loss aversion, examines their correlation with demographic variables, and assesses their influence on investment performance. Statistical tools, including descriptive statistics, correlation, and regression analyses, are employed to analyze the data. The findings reveal significant relationships between demographic factors and behavioral biases, providing insights for financial institutions and policymakers to design interventions aimed at mitigating biases and improving investment outcomes. Future research directions are also discussed.