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A STUDY ON BEHAVIOURAL FINANCE ON WEALTH MANAGEMENT DECISIONS

Authors: Dr. Jennie Prajith, Dhyey Vyas, Snehraj Bhatkar, Kartik Kate & Prajeet Patkar;

A STUDY ON BEHAVIOURAL FINANCE ON WEALTH MANAGEMENT DECISIONS

Abstract

This research study examines the impact of behavioral finance on individual investors' wealth management decisions. While traditional financial theories assume that investors act rationally, practical observations show that emotions and psychological biases significantly influence financial behavior. Factors such as loss aversion, overconfidence, and herd behavior often affect investment choices, risk tolerance, and long-term financial planning. The study is based on primary data collected from 100 individual investors through a structured questionnaire. The findings indicate that many investors are influenced by emotions and market trends when making investment decisions, and that a majority are sensitive to potential losses. The research highlights the importance of understanding investor psychology in designing effective wealth management strategies. Overall, the study concludes that behavioral biases play a crucial role in shaping investment decisions and financial outcomes.

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