Published Paper Details:

Abstract Purpose-: The purpose of this paper is to examine behavioural biases to individual investors, specifically Cognitive dissonance, Prospect theory, Disposition effect and mental accounting. It further examine role of demographic and investor sophistication affecting these biases, finally it revels which biases influence most in decision making. Design/Methodology/Approach-: For this purpose data has been collected from four major smart city of Madhya Pradesh i.e. Gwalior, Bhopal. Indore and Sagar. Data collected through structured questionnaires which later analysed with relevant statistical tools. Findings -: Study reveals that behavioural biases are depend upon demographic profile of investors and their trading sophistication. Most influencing factors are age, profession and trading frequency. Each bias has specific set of investor and cognitive dissonance is most important bias in Indian individual investor context. Research limitation-: The main limitation of present study is that responses from investors are socially desirable rather than based on actual market behaviour. Further due to time and resources constraints only individual investors belongs from four smart city of M.P taken into consideration for study. Practical Implication-: Present study is most likely relevant for fund managers and financial advisors who deal with individual investors to understand psychology of individual investors. Original Value-: The present study consider four behavioural biases i.e. Mental Accounting, Cognitive Dissonance, Prospect theory and Disposition effect which is not taken together in any previous study