Impact of behavioral finance on investment decisions

Tentative Abstract:
The aim of this research paper is to gathered the information and knowledge and then sharing this with others. You could know about the term behavioral finance and investment decisions process through this paper. I will try to understand about how behavioral finance impact on investment decisions and how psychological factors effect decision making under uncertainty. I will study the human beings rational and irrational behaviors in finance and their impact on investment alternatives. Then I will study the level of involvement of behavioral finance in investment decisions. Behavioral finance attempts to investigate the psychological and sociological issues that influence investment decision making process of individual and institutions. Factors of behavioral finance also affect the investments strategies and investment decisions making process. The goal of this paper is to observe the different personalities have different behaviors respond different in investment decisions. Situational behaviors of people also effect the financial investment decisions. Sometimes events occurs psychological effects on the investors and investor behaves differently in investment decisions. Behavioral economics, and the related field of behavioral finance, makes use of social, cognitive and emotional factors to understand individuals investment decisions. . Rather than assuming that all people or most people will behave optimally, randomly and rationally, BF takes into consideration some of the psychological biases and decision-making processes of people. Methodology of this research paper is that data will be collected from secondary sources. Knowledge and information about topic will be gathered from different articles of different journals and from different web sites on internet sources and from many books. The supervisor of this paper also guide me that how can I collected data about topic and I can discussed issues with supervisors for problems solutions. Different authors ideas and thinking paraphrasing in this paper which clear the whole concept about impact of behavioral finance on investment decisions and describe the factors of behaviors which can effects the investment decisions. The originality of this paper wills that this paper will be published in international journal and everyone can get this knowledge for more research about related topic. This paper will be helpful the finance students they can understand the effects of behaviors on investments. Investor itself can observe his behaviors and then invest in projects according to the environmental factors. All the information will be authentic with references and citations of different authors.