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Research Paper | Finance | India | Volume 9 Issue 1, January 2020

Impact of Behavioral Finance on Equity Selection Pattern by Retail Investor - An Analytical study of Varanasi and Prayag Raj

Anjali ^[235] | Dr Akshat Dubey

Abstract: Purpose of the Study- Through this paper, an attempt is being made to study the behavior pattern of the retail investor when it comes to equity Investment and how Cognitive and Emotional Biases affect Individual Decision making. Methodology- An exploratory study conducted on the 51 equity share investors using Purposive sampling method from Varanasi and PrayagRaj Region of Uttar Pradesh in India during the time period of 1st June to 3o June 2019. Main Findings- Age and Gender both are affected by various types of Biases especially Herd Instinct, Self Attribution Bias and Regret Aversion Social ImplicationThe impacting Cognitive and Emotional Biases are examined to draw a framework and guideline for the informed action. This will help the Investment Intermediaries to plan apt strategies and the customers to be aware of the impending factors that affect choices. The novelty of the study Very few Researches have touched bases with both Cognitive and Emotional factors acting as parameters especially in Tier-II cities of India like Prayagraj which are the new Engines of Growth and Investment and wherein the new aspirational middle class resides. Hence such research may act as a catalyst for Investment strategy formulation.

Keywords: Cognitive Biases, Emotional Biases, Behavioral Finance, Representativeness Heuristic, Herd Instinct Bias, Self Attribution Bias

Edition: Volume 9 Issue 1, January 2020,

Pages: 1560 - 1566

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