PRESENCE OF BEHAVIOURAL BIASES IN INDIAN INVESTORS
Traditional finance holds that investors make rational decisions by objectively assessing market information to maximize returns. This view suggests that rational investors are unbiased and immune to emotional and psychological influences. Rational investors are expected to process information efficiently and adjust prices instantaneously to the latest market information. However, the reality is different. Researchers have found that investors are not always rational and are susceptible to various biases, feelings, and perceptions that affect their judgment. The investing world is, therefore, not a realm of sensible businessmen but a complex system of actors influenced by their biases, patterns, and causes. Portfolio managers, policymakers, and other economic players must recognize the significance of investor biases, patterns, causes, and remedies in making the best investment decisions for clients and the broader economy. By understanding and addressing these biases, investors can avoid suboptimal decision-making and improve their investment outcomes. The paper aims at examining the existence of heuristic biases in Indian investors.