ISSN: 2265-6294

The Influence of Emotional Factors on Investor Decision-Making: A Behavioral Finance Perspective

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Dr. Rupinder kaur Bhatti

Abstract

Investors now have access to a wider range of securities and financial instruments than ever before because to the development of global financial markets. As a result, the field of behavioral finance has illuminated the traits and mental processes that shape investors' motivations and choices when making financial commitments. Changes in national and global economic and political processes, the availability and accessibility of information, and many other elements all have an impact on the global financial markets. However, the reaction and impression of investors is the most crucial component. One's state of mind can be profoundly affected by the decision-making process, which may be seen as an ongoing cycle by an individual investor. Behavioral finance is based on studies of human and social recognition and emotional tolerance and is utilized to make financial decisions. This article's focus is on research that track investors' behavior over many years. In explaining the mental and emotional factors that affect investment decisions, this article shows the investor's own mentality. The results of the investigation are shown graphically.

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