Strategies to Mitigate Behavioural Risk in Investment Decision Making

Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 2

Abstract

An Investment decisions is the most crucial challenge faced by investors. Behavioural Finance is an Art and Science both. It deals with the psychological and emotional phenomenon that influences investors to take rationally or irrationally investment decisions. The present paper helps to identify the Behavioural risk factors that lead investment biases. The study also helps to provide various strategies to mitigate Behavioural risk that affect investors in investment decision making process. For attaining the purpose of the present study secondary data is used to collect the information. Secondary data are collected from Newspapers, Articles, Journals, etc. From the past researches certain factors are identified to develop System Dynamic Model. The causal loop diagram and stock flow diagram is developed for the investors investment decisions. The psychological and emotional aspects effect on investment decisions. It was found that mostly investors are influenced by irrational decision which leads to the investment biases.

Authors and Affiliations

Dr. Sunita Kumari Malhotra

Keywords

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  • EP ID EP409866
  • DOI 10.9790/487X-2002096065.
  • Views 37
  • Downloads 0

How To Cite

Dr. Sunita Kumari Malhotra (2018). Strategies to Mitigate Behavioural Risk in Investment Decision Making. IOSR journal of Business and Management, 20(2), 60-65. https://europub.co.uk/articles/-A-409866