An Analytical Study of Psychological behavior of investors investing in Mutual Funds with reference to endowment bias & Self-control bias

  Abhijit P. Bobde,  Dr. Pravin T. Bagde,  Dr. Nitin S. Goje

Investment decision making should be rational as it is the hard earned money of the investor and it should be exercised after a thorough study. Our education system teaches us to work hard to earn money but never teach how money will earn money through investments. People commit blunders while investing their hard earned money due to lack of knowledge and in turn gain insight about the pros and cons of investing. Practical experience with investing money makes investor to experience bright or dark side of investment. Investors investing in different market conditions and in different environment experiences high emotional turmoil, these experiences are stored in our cellular memory and further used for decision making of Investments thus creating behavioral biases. Study of Behavioral biases are studied under behavioral finance. Behavioral biases are of two types Cognitive Bias & Emotional Bias, In this paper we are studying emotional bias especially the endowment bias & the Self -control Bias.

Keywords- Behavioral Finance, Investor’s Behavior, Mutual Fund, Emotional Bias, Endowment Bias, Self-Control Bias

Unique Identification Number - IJEDR1704103
Page Number(s) - 644-648
Pubished in - Volume 5 | Issue 4 | November 2017
DOI (Digital Object Identifier) -   
Publisher - IJEDR (ISSN - 2321-9939)

  Abhijit P. Bobde,  Dr. Pravin T. Bagde,  Dr. Nitin S. Goje,   "An Analytical Study of Psychological behavior of investors investing in Mutual Funds with reference to endowment bias & Self-control bias", International Journal of Engineering Development and Research (IJEDR), ISSN:2321-9939, Volume.5, Issue 4, pp.644-648, November 2017, Available at :http://www.ijedr.org/papers/IJEDR1704103.pdf