CONCEPTUAL FRAMEWORK OF INVESTOR’S BEHAVIOR
2
Author(s):
CA DEEPAK KATARIA , MR. JAYANT HOODA
Vol - 6, Issue- 4 ,
Page(s) : 166 - 178
(2015 )
DOI : https://doi.org/10.32804/CASIRJ
Abstract
This paper presents a conceptual model/framework of the individual investor. By taking a descriptive point of view, we focus our attention on how investors make their investment decisions in a real world setting, as opposed to rational/optimal behavior proposed by normative financial theories. This conceptual model/framework incorporates results of the research on investment decisions from fields of behavioral finance and cognitive psychology. It is based on a review of existing studies, which themselves were conducted using various research methods. It particularly draws on the heuristics and biases strand of behavioral finance literature, as well as the dual-process theories of human cognition. For understanding the investor behavior we also need to understand the psychology of an individual.
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