Published Paper Details:

Conventional financial theories are built on the premise that investors behave rationally and markets incorporate all relevant information efficiently. However, persistent irregularities in financial markets indicate that investor behaviour often deviates from rational decision making. Behavioural finance offers an alternative framework by integrating psychological and behavioural insights into financial analysis. This paper examines the influence of cognitive biases, heuristics, and emotional factors on financial decision making among Indian investors. Drawing upon an extensive review of existing literature and secondary data sources, the study identifies major behavioural biases affecting investment choices and market behaviour in India. The findings suggest that psychological factors play a decisive role in shaping investor actions, contributing to market inefficiencies. The study underscores the importance of incorporating behavioural finance principles into investment strategies, financial advisory practices, and regulatory policies.