Behavioural Biases in Investment Decision-Making: A Conceptual Review

Authors

  • Upasana Gohain Department of Commerce, Gauhati University Author
  • Santosh Kumar Mahapatra Department of Commerce, Gauhati University Author

DOI:

https://doi.org/10.63635/mrj.v1i1.16

Keywords:

Behavioural finance, behavioural bias, investment decision, risk perception, risk propensity

Abstract

Behavioural finance, founded on the concept of bounded rationality and holding that individuals tailor their logical decision-making process by taking note of their knowledge constraints, emotional, and psychological factors, deviates from the notion of rationality, further diverging from conventional financial theory. This paper is a synthesis of the present literature to identify the common behavioural biases and the key research topics relating to behavioural biases in investments. The paper further summarizes the synthesis insights into a coherent framework and identifies the future scope for investigation. The paper highlights the requirement for more research to address these inconsistencies in findings, and thoroughly understand the complex relationships between psychological biases and investors’ decisions.

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2025-01-21

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Volume 1, Issue 1, 2025

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How to Cite

Gohain, U., & Mahapatra, S. K. (2025). Behavioural Biases in Investment Decision-Making: A Conceptual Review. Multidisciplinary Research Journal, 1(1), 134-146. https://doi.org/10.63635/mrj.v1i1.16