Title: Association of investors' investment decision, informational heuristics and demography: Indian evidence

Authors: Navita Nathani; Garima Mathur; Simran Rohira

Addresses: Department of Management, Prestige Institute of Management, Airport Rd, D.D. Nagar, Deen Dayal Nagar, Gwalior, Madhya Pradesh, 474020, India ' Department of Management, Prestige Institute of Management, Airport Rd, D.D. Nagar, Deen Dayal Nagar, Gwalior, Madhya Pradesh, 474020, India ' Department of Management, Prestige Institute of Management, Airport Rd, D.D. Nagar, Deen Dayal Nagar, Gwalior, Madhya Pradesh, 474020, India

Abstract: In the world of finance, cognitive psychology is emerging as a phenomenal aspect. In behavioural finance where human factor is involved, role of cognition becomes inevitable. Before investing many factors come to investor's mind, which may regulate the decisions related to investments. The principal aim of this paper is to fill the gap by analysing the sway of heuristics while taking decisions by an investor. The study used primary data collection method to collect responses from the investors; in all, 234 questionnaires were circulated and out of them 200 were found inclusive. Researcher carefully examined and included those respondents, who were novice and took help of set plans or strategies to decide their portfolio. The study is useful in the field of investment decisions of the different investors who belongs to the different demographics. Analysis shows that investors' heuristics attitude and investors' decision making are strongly correlated and it seems that heuristics attitude influences investment decision of investors.

Keywords: investment decision; heuristics attitude; cognitive biases; trading behaviour; demographic variables; psychological biases; frame dependency; regret aversion; herd behaviour; mental processes; price anomalies; behavioural finance.

DOI: 10.1504/IJTGM.2023.130740

International Journal of Trade and Global Markets, 2023 Vol.17 No.2, pp.120 - 132

Received: 25 Feb 2020
Accepted: 12 Nov 2020
Published online: 04 May 2023 *

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