A Study of Investors Behaviour with Respect to Investment Decision Making in Equity and Mutual Fund

Abstract

Investor behavior in financial markets has long been a subject of intrigue and concern for market participants, regulators, and academics alike. This Ph.D. thesis embarks on a comprehensive investigation of investor behavior, with a specific emphasis on investment decision-making in the domains of equity and mutual funds. The research delves into the intricacies of why and how investors make decisions, recognizing the multifaceted nature of their motivations and cognitive processes. newlineThe study adopts a multifaceted research approach, integrating quantitative and qualitative analyses while drawing upon theories from behavioral economics, finance, and psychology. The research methodology encompasses a mixed-methods design, incorporating surveys, in-depth interviews, and real-world case studies. Furthermore, market data and investor sentiment analysis are harnessed to provide a comprehensive panorama of investor behavior in the chosen investment avenues. newlineThe study strives to unearth the factors that exert influence on investor behavior in equity and mutual fund markets. Factors such as risk tolerance, investment horizon, financial literacy, and socio-demographic variables are examined to comprehend how they mold investment choices. newlineA central theme of this research is the examination of behavioral biases that underpin investment decision-making, including overconfidence, loss aversion, and herding behavior. These biases are critically analyzed for their implications in the context of equity and mutual fund investments. newlineThe thesis explores the extent to which external factors such as market volatility, economic conditions, and regulatory changes impact investor behavior and the strategies they employ in equity and mutual funds. This analysis offers insights into the adaptability of investors to changing market environments. newlineBy examining the influence of investor behavior, the research assesses the implications for asset prices, market efficiency, and overall market stability.