"Behavioral Biases On Investment Decision": Dr. Janki Mistry

A
PROJECT STUDY REPORT ON
“BEHAVIORAL BIASES ON INVESTMENT DECISION”

Submitted towards The Partial Fulfillment of The Requirement of
MBA (Full-Time) Programme
SUBMITTED BY
NOORANI SAMEER FIROZ

UNDER THE GUIDANCE OF
DR. JANKI MISTRY
G.H. BHAKTA MANAGEMENT ACADEMY

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT
VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT
APRIL 2023
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DECLARATION
I, the undersigned SAMEER FIROZ NOORANI, student of MBA (Finance) Programme at

the Department of Business & Industrial Management, Veer Narmad South Gujarat
University, Surat, hereby declare that the work reported by me in this report titled
“BEHAVIORAL BIASES ON INVESTMENT DECISION” is original and fully an outcome
of the winter research project work carried out by me.
I further declare that the personal data and information received from any respondent
during survey has not been shared with any one and is used for academic purpose
only.
Further, I would like to declare that this report has not been submitted to any other
University or institute for the award of any degree or diploma.
Place: Surat
Date:15/04/2023
SAMEER FIROZ NOORANI
SPID: 2021070124
MBA (Finance) Programme

Subject: Project Study
Department of Business and Industrial Management
Veer Narmad South Gujarat University,
Surat.
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Department of Business & Industrial Management
Surat
DEPARTMENT CERTIFICATE
This is to certify that SAMEER FIROZ NOORANI has completed his project report as a
part of MBA curriculum. He has successfully completed a study on “BEHAVIORAL
BIASES ON INVESTMENT DECISION”
His work is found to be of the standard required of MBA curriculum.
DR,JANKI MISTRY
(Professor)

Veer Narmad South Gujarat University
Surat – 395007, Gujarat, India
Professor & Head of department

Surat 395007, Gujarat, India.
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Acknowledgement
The success and final outcome of this project required a lot of guidance and
assistance from many people and I am extremely fortunate to have got this all along
the completion of my project work. Whatever I have done is only due to such
guidance and assistance and I would not forget to thank them
Firstly, I would like to thank our honorable Department Head, Professor who always
work and think in the direction of betterment of the students and institute as well as
supporting us with all the necessary resources to finish our two golden years of
post-graduation.
Secondly, I cannot forget the contribution of my project guide/mentor Dr. Janki

Mistry without the support of whom I would have never completed this report. Her
constant help, guidance and continuous teaching have given me so many inputs on
academic as well as non- academic front. I would really like to thank her for her help
and advices.
Also, I am thankful to and fortunate enough to get constant encouragement, support

and guidance from all teaching staffs of Department of Business And Industrial
Management which helped me in successfully completing my project work.
Lastly, I would thank all my friends & other persons directly or indirectly, who have
supported me in completing this report.
Sameer Noorani
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EXECUTIVE SUMMARY
The Comprehensive Project Report on “To study the impact of behavioral biases on
investment decision”- of M.B.A. program for the year 2023 includes the following
chapters.
The first chapter includes the introduction of the topic where all the information about
overall Behavioural biases and what is investment.
The second chapter is industrial profile where information about Global, National and
State level, PESTEL Analysis, Major players.
The third chapter is literature review which displays the past research on investing
behaviour of investors and related to this topic from different researchers, from which
the base for this report is made. I have included 7 literature reviews.
The fourth chapter is research methodology which states Problem statements,

Research Questions, Research Objectives, Research Design for the study.
The fifth chapter is data analysis which shows the analysis for the collected data and
its interpretation through frequency tables and charts. And also included Graphical
representation of data with statistical analysis and interpretation Analysis also helps
for the conclusion and findings.
There are finding from data analysis; it shows the specific result from the analysis
made.
The last chapter is conclusion of the whole report, it states the final decision,
determination or result from which the answer to the problem for which research is
been made is obtained.
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TABLE OF CONTENTS
CHAPTER TITLE PAGE NO.
1 INTRODUCTION OF THE STUDY 12
2 INDUSTRY PROFILE OF INVESTMENT INDUSTRY 20
2.1 GLOBAL SCENARIO 21
2.2 NATIONAL SCENARIO 24
2.3 STATE LEVEL SCENARIO 26
2.4 MAJOR PLAYERS ACCORDING TO THE CURRENT 27
TRENDS
2.5 PESTLE ANALYSIS OF INVESTMENT INDUSTRY 32
3 LITERATURE REVIEW 37
4 RESEARCH METHODOLOGY 41
4.1 PRROBLEM STATEMENT 42
4.2 RESEARCH OBJECTIVE 42
4.3 RESEARCH DESIGN 42
4.4 SAMPLE DESIGN 43
4.4.1 SAMPLING METHOD 43
4.4.2 SAMPLE SIZE 43
4.4.3 SAMPLE ELEMENTS 43
4.4.4 SAMPLING FRAME 43
4.5 DATA COLLECTION SOURCE 43
4.6 DATA COLLECTION METHOD 44
4.7 INSTRUMENTS AND TOOLS FOR ANALYSIS 44
4.8 BENEFITS OF THE STUDY 44
4.9 LIMITATIONS OF STUDY 44
4.10 SCOPE OF THE STUDY 44
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5 DATA ANALYSIS 45
KRUSKAL – WALLIST TEST 76
CORRELATION ANALYSIS 86
FINDINGS 106
6 CONCLUSION 109
BIBLIOGRAPHY 113
ANNEXURE 114
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SERIES TITLE OF TABLE PAGE
NO. NO.
1 Table: 6.1 What is your main objective for investment? 47
2 Table:6.2 I do invest in... 48
3 Table: 6.3 I use the information as most people e.g., 49

company profit.
4 Table: 6.4 If many people rely on a certain kind of information 50

(e.g., return on assets) then it’s likely that the information is
reliable
5 Table: 6.5 In time of uncertainty in the market, I will mostly do 51

what other people are doing
6 Table: 6.6 I'm likely to copy the investing decision made by 52

people that I know
7 Table: 6.7 I'm generally very good at reading trends in the 53

market
8 Table:6.8 I am generally better than other investors when it 54

comes to reading trends in the market
9 Table: 6.9 I generally don't need the services of a financial 55

planner when investing in financial products
10 Table 6.10 I prefer low-risk investments over risky 56

investments, even if their returns are low
11 Table: 6.11 I readily sell shares that have increased in value 57
12 Table: 6.12 after a prior loss, I become more risk-averse 58
13 Table: 6.13 I buy "hot" stocks and avoid stocks that have 59
performed poorly recently
14 Table: 6.14 I use trend analysis to make investment decision 60
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15 Table: 6.15 I buy the new equity offering of the company I 61
have
already invested in
16 Table: 6.16 I appear to believe that past return is indicative of 62

future returns
17 Table: 6.17 My trading is affected by recent experience in the 63

market
18 Table: 6.18 I use the purchase price of the stock as reference 64

points in trading
19 Table: 6.19 I usually rely on experience in the market for my 65

next investment
20 Table: 6.20 Before buying a share, I ignore the market 66

information that conflates with mine.
21 Table: 6.21 Before buying a share, I appreciate the market 67

information that supports mine
22 Table: 6.22 To support all information which is I predication 68
23 Table: 6.23 Gender 1. Male, 2 Female, 3 other 69
24 Table: 6.24 age 70
25 Table: 6.25 monthly income 71
26 Table: 6.26 occupation 72
27 Table: 6.27 education 73
28 Table: 6.28 Kruskal-Wallis test 75
29 Table: 6.29 correlation test 85
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SERIES TITLE OF FIGURE PAGE
NO. NO.
1 Figure: 1.3.1 Origin of Biases 5
2 Figure: 1.3.2 Types of Biases 5
3 Figure: 6.1 What is your main objective for investment? 47
4 Figure: 6.2 I do invest in.. 48
5 Figure: 6.23 Gender 1. Male, 2 Female, 3 other 69
6 Figure: 6.24 age 70
7 Figure: 6.25 monthly income 71
8 Figure: 6.26 occupation 72
9 Figure: 6.27 education 74
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CHAPTER-1
INTRODUCTION
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1.1 INTRODUCTIONOF INVESTMENT AND BEHAVIOUR FINANCE AND ITS
BIASES
INVESTMENT:
Income earned by people can be either spent for current consumption or saved for
futureconsumption. But savings itself are not investments. When you do something to
your savings to make them increase over the time, it is known as Investment.
A commitment of funds made in the expectation of some positive rate of return. An

investment is current commitment of funds in order to derive future payments that will
compensate the investor for-
1. time the funds are committed,
2. the expected rate of inflation and
3. the uncertainty of future payments i.e., the risk Undertaken
There are different characteristics of investment like-
1. Risk
2. Return
3. Safety
4. Liquidity
5. Hedge against inflation
There is major 3 objective of investment:
1. Maximize the return
2. Minimize the risk
3. Hedge again inflation
BEHAVIORAL FINANCE:
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Behavioural finance is an idea evolved with the inputs taken from the sector of
psychology and finance. It attempts to recognize the diverse complicated elements in
inventory markets to provide higher reasons for the same. These elements or
abnormalities had been to start with termed as marketplace anomalies, as they
couldn't be defined withinside the Neo-classical framework. To solution the elevated
quantity and kinds of marketplace anomalies, a brand-new method to economic
markets had emerged- the Behavioural finance. Behavioural finance is described
because the observe of the impact of socio-mental elements on an asset’s price. It
specializes in investor behaviour and their funding decision-making process.
Behavioural Finance (BF) is the look at of investors’ psychology even as making

monetary decisions. It is the look at of the have an effect on of psychology and
sociology at the behaviour of monetary practitioners and the following impact on
marketplace. According to Behavioural finance, investors’ marketplace behaviour
derives from mental standards of selection-making to provide an explanation for why
humans purchase or promote inventory. Behavioural finance focuses upon how
investor translates and acts on facts to take diverse funding decisions. Behavioural
finance may be defined as current finance wherein it seeks the motives of inventory
marketplace anomalies with the aid of using justifying them with rationalization of
diverse biases that the investor has even as taking funding decisions. Behavioural
finance is an add-on paradigm of finance, which seeks to complement the same old
theories of finance with the aid of using introducing behavioural components to the
selection-making process. Behavioural finance offers with people and approaches of
accumulating and the usage of facts. At its core, behavioural finance analyses the
approaches that humans make monetary decisions. Behavioural finance seeks to
recognize and predicts systematic monetary marketplace implications of mental
selection processes. In addition, it centred at the software of mental and monetary
standards for the development of monetary selection making. Behavioural finance is
the aggregate of psychology, sociology and finance.
In addition, behavioural finance additionally locations emphasis on investor’s

behaviour main to numerous marketplace anomalies. Investors fall prey to their very
own and on occasion others’ errors because of the usage of feelings in monetary
decision-making. For many monetary advisors, BF continues to be a surprising and
unused subject.
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Thus, Behavioural finance may be defined withinside the following ways:
• Behavioural finance is the combination of classical economics and finance with

psychology and the selection making sciences.
• Behavioural finance is a try to give an explanation for what reasons a number of the
anomalies which have been discovered and stated withinside the finance literature.
• Behavioural finance is the look at of ways buyers systematically make mistakes in

judgment or ‘intellectual mistakes.
Behavioural finance is described as the sphere of finance that proposes mental

primarily based totally theories to give an explanation for inventory marketplace
anomalies. Within the Behavioural finance its miles assumed that the statistics shape
and the traits of marketplace members systematically impact individual’s funding
selections in addition to marketplace outcomes.
1.2 FINANCE AND INVESTMENT DECISIONS:
Decision making is a complicated system which may be described as a system of

selecting a selected opportunity amongst some of viable guides of actions after
cautious assessment of each. Most important demanding situations to buyers are to
make funding selection, having a distinction of their profile, like demographic factors,
socio financial factors, instructional levels, age, gender, and race.
Given the run up in inventory (capital) marketplace in 2004 to the cease of 2007 and
next downturn of monetary marketplace, know-how irrational investor behaviour is as
crucial because it has ever been. In gift situation behavioural finance has grown to be
a quintessential a part of selection making system because of its effect on overall
performance of funding inventory marketplace in addition to mutual funds.
Most vital trouble is marketplace player can't behave rationally always, they deviate
from rationality and anticipated software assumption, whilst surely making funding
decisions. So, behavioural finance assist buyers in addition to marketplace individuals
to apprehend biases and different mental constraint of their interaction in marketplace.
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1.3 BEHAVIOURAL BIASES THAT INFLUENCE INVESTMENT DECISIONS:
FIGURE:1.3.1 Origin of Biases
Heuristics Emotional Cognitive
representatives endowment effect confirmation bias
availability disposition effect overconfidance bias
loss aversion anchoring bias
regret aversion framing bias
self control mental accounting
FIGURE:1.3.2 Types of Biases
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• The representativeness heuristic involves estimating the likelihood of an event
by comparing it to an existing prototype that already exists in our minds.
• The availability heuristic is a cognitive bias in which you make a decision based
on an example, information, or recent experience that is that readily available to
you, even though it may not be the best example to inform your decision
(Tversky&Kahneman, 1973).
• Confirmation bias is the tendency of people to pay close attention to

information that confirms their belief and ignore information that contradicts it.
• Confirmation bias affects perceptions and decision-making in all aspects of life,

but it can create particular problems for investors.
• Overconfidence has two components: overconfidence in the quality of your

information, and your ability to act on said information at the right time for
maximum gain.
• Familiarity bias is the idea best illustrated by the old Wall Street adage: “Invest
in what you know.” It is defined as the tendency for individuals to prefer what is
familiar and to seek to avoid the unknown. While this tendency is present in all
areas of life (such as the foods we choose to eat or the route we take on our
morning commute), it is especially prevalent in the investment selection
process.
• Potential Causes of Familiarity Bias on Investors.
• A combination of factors contributes to the existence of familiarity bias in

investors. These factors tend to fall into two main categories: institutional
frictions and behavioural finance. Institutional frictions include inflation risk,
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currency risk, transaction costs, and asymmetric information. Behavioural
finance issues include employees overinvesting in their own companies’ stock,
overconfidence in forecasting returns on familiar assets, risk avoidance,
patriotism, and social identification.
• Framing bias occurs when people decide based on how information is

presented. Due to this cognitive bias, individuals overlook factual data. The bias
is either influenced or caused by impulsive decision-making.
• Sentences can be framed positively or negatively—often, individuals respond to

the tone and style of presentation. This perception influences their decisions.
• Groupthink is a cognitive bias in which there is a desire for harmony or

conformity in the group. In many cases, people will set aside their own personal
beliefs to adopt the opinion of the rest of the group.
• The endowment effect is a principle in behavioural psychology that describes

the tendency of people to value an object that they own higher than they would
value if they didn’t own it. Their valuation of an owned object will often be
higher than its true fair market value. The endowment effect is also sometimes
referred to as the “ownership effect.”
• The cause of the endowment effect is frequently assumed to be related to

loss-aversion psychology – a theory that states that people ascribe a higher
value to losing something than they do to obtaining something.
• The disposition effect refers to our tendency to prematurely sell assets that
have made financial gains, while holding on to assets that are losing money.
We are driven to sell our winning investments in order to ensure a profit, but are
averse to selling losing investments in hopes of turning them into gains.
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• Loss aversion is a tendency in behavioural finance where investors are so
fearful of losses that they focus on trying to avoid a loss more so than on
making gains. The more one experiences losses, the more likely they are to
become prone to loss aversion. Research on loss aversion shows that investors
feel the pain of a loss more than twice as strongly as they feel the enjoyment of
making a profit.
• Many investors don’t acknowledge a loss as being such until it is realized.

Therefore, to avoid experiencing the pain of a “real” loss, they will continue to
hold onto an investment even as their losses from it increase. This is because
they can avoid psychologically or emotionally facing the fact of their loss as
long as they haven’t yet closed out the trade. In their subconscious, if not their
conscious, thinking, the loss doesn’t “count” until the investment is closed.
• The negative effect of this, of course, is that investors often continue to hold
onto losing investments much longer than they should and end up suffering
much bigger losses than necessary. That’s what loss aversion looks like in
practice.
• Though the rational part of our mind reminds us that selling winners and not
letting losers go is a wrong behavioural pattern, we still often struggle to take
the necessary actions. It means that trades often don’t have enough discipline
and self-control to sell the losers and not to sell winners too quickly.
• Although it’s unlikely that we will be able to bury the disposition bias for good, it
is possible to learn how to reduce its influence on our decision-making.
• According to Shefrin and Statman, traders tend to “open a new mental account”
for every investment. By doing so, they focus on the performance of each and
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every trade, instead of tracking the performance of their portfolio as a whole.
This is an example of a narrow framing. It makes hard to sell a losing stock,
because traders see it as closing the mental account at a loss.
• Selling at a loss, even if it seems totally rational, means admitting a trader was
wrong, which is hard for many people. Holding the stock allows him to avoid
the feeling of regret, which follows the mistakes we make.
• In case of a winning trade, holding onto it means risking the profit a trader has
already made. Taking a small profit instead creates the feeling of pride.
1.4 APPROACHES TO DECISION-MAKING IN BEHAVIOURAL FINANCE:
Behavioural finance advocates processes to selection-making:
• – Following your intestine feeling and inherent beliefs. In truth that is your
default option.
• – This technique is logical and methodical, something that calls for a deep
notion process.
The greater traders depend on reflexive selection-making, the greater uncovered

they're to behavioural biases like self-deception biases, heuristic simplification, extra
feelings and herding. Behavioural finance is an extensive take a look at on those styles
and is growing a critical vicinity for itself amongst traders and funding managers.
To mitigate in opposition to reflexive selection-making, it’s critical to installation

procedures. Consider putting in procedures that manual you thru a logical selection
making technique and consequently assist mitigate using reflexive selection making.
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CHAPTER-2
INDUSTRY PROFILE
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2.1 GLOBAL SCENARIO OF INVESTMENT INDUSTRY:
• There’s no higher manner to put together yourself for 2023 than understanding
what the arena’s professionals are predicting for the 12 months ahead. A
Tehelka Bureau file.
• With populace slowing down in China, India is predicted to come to be the

growing marketplace of choice. India has already outpaced China because the
maximum populous United states of America in 2023. Also, India has the
situations in area for a monetary growth fuelled via way of means of offshoring,
funding in manufacturing, the power transition, and the United States of
America’s superior virtual infrastructure.
• The2023 Global Forecast Report created the use of over 500 predictions from
greater than one hundred one-of-a-kind sources, consisting of greater than 20
financial institution reviews and outlooks provides a thrilling worldwide
scenario. The VC+ file provides the pinnacle banks’ forecasts for the S&P 500,
treasury yields, and recession timelines charted. It additionally offers a bird’s
eye view of the IMF’s inflation, unemployment, and GDP increase outlooks for
countries and a set of the “spiciest” and maximum outrageous predictions from
professionals for the 12 months ahead.
Is a recession coming?
• For the U.S. and Global Macroeconomics Bank of America going into 2023, one
predicted surprise remains: recession. The U.S., Euro place and UK are all
predicted to look recessions subsequent 12 months, and the relaxation of the
arena ought to preserve to weaken, with China an extremely good exception.
• Most banks are anticipating the U.S. to go into a recession withinside the latter
1/2 of of 2023. Experts estimate a 35% opportunity that the U.S. economic
system enters a recession over the subsequent 12 months. Similarly maximum
banks are anticipating the U.S. to go into a recession withinside the latter 1/2 of
of 2023. These consist of J.P. Morgan, Goldman Sachs, Bank of America,
Morgan Stanley, Barclays, Wells Fargo and PNC Deutsche Bank. “We estimate a
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35% opportunity that the U.S. economic system enters a recession over the
subsequent 12 months,” says Goldman Sachs
Expect the unexpected?
• Regional tensions breed possibility as the economic system slows, we will be

dealing with an extended consumer-pushed recession instead of simply
substantial declines in funding and related losses in employment. The
traditional knowledge sees shares falling withinside the first six months of
2023 in anticipation of a US recession after which convalescing withinside the
returned 1/2 of of the 12 months as soon as the primary inexperienced shoots
appear. We assume the complete opposite will happen. 2023 can be 12
months of worldwide recession, however funding possibilities will get up from
the continuing desynchronization among the 3 biggest monetary blocs – the US,
the Euro place and China. Stocks will upward thrust withinside the first 1/2 of
of 2023 as hopes of a gentle touchdown intensify, after which dip withinside
the 2nd 1/2 of.
• As the economic system slows, we will be dealing with an extended

consumer-pushed recession instead of simply substantial declines in funding
and related losses in employment, says Mihir Desai, professor of finance HBS.
Once the point of interest shifts from the Fed’s financial coverage and hobby
rates, the timing and intensity of the monetary slowdown can be withinside the
arms of consumers.
Interest rate
• While many professionals are forecasting a top and eventual cuts in hobby
quotes for 2023, the Federal Reserve’s today's projections best see quotes
going higher. While the Federal Reserve’s projections don’t foresee charge cuts
in 2023, economists have been greater constructive while polled via way of
means of the WSJ. Top sixty-six economists gave their predictions for in which
the midpoint of the Fed Funds Rate might be on the give up of 2023. They see a
top UK hobby charge of 4.0%–4.5% withinside the 2d sector. Higher quotes
below scenario #1 ought to motive domestic income to drop via way of means
of greater than 10% subsequent year. In scenario #2, domestic income drop via
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way of means of 7% to 8%. And in scenario #3, domestic interest might also
drop in addition via way of means of greater than 15%.
• Inflation may also fall even supposing labour pressures continue to be strong.
The fast decline withinside the working-age populace is possibly to generate
non-stop labour shortages of blue-collar and guide offerings workers. The
charge of salary boom in those jobs ought to be highly sturdy in maximum
years till the following recession. The U.S. unemployment charge ought to top
at 5.5% withinside the first sector of 2024, hindering purchaser spending.
Inflation is poised to drop beneath Neath salary boom.
• Already withinside the first 10 days of January groups have begun out layoffs.
For example, Salesforce has laid off 8,000 employees, Amazon 8,000, Goldman
Sachs 3,200, Huobi 275, Byte Dance 70-100, Silver gate 200, Twitter 52, Genesis
60 and Gate.io 160.
• Significantly, rising markets have higher boom, decrease inflation, and much
less sovereign and personal debt, but EM equities and currencies exchange at
crisis-stage valuations. Gold will continue to be a applicable hedge in
opposition to numerous geopolitical risks, in addition to the threat of a 2d wave
of inflation. The tech IPO marketplace will rebound in 2023, unexpected quite a
lot everyone. U.S.-China members of the family will possibly stabilize extremely
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in early 2023 given Xi’s ongoing appeal offensive, one aimed toward repairing
Beijing’s badly broken recognition without changing any of its malign behaviour.
• One key vicinity this will manifest is withinside the battlefield of social media
systems. AI advances make it smooth for bots to seem greater human, and
unfold disinformation. In 2023, we’ll additionally see a dramatic growth
withinside the availability of smooth-to-adopt, completely supported AI
workflows primarily based totally on what are known as Transformer models.
AI is turning into the inspiration for data-processing systems and a critical
engine of each commercial enterprise and enterprise.
2.2 NATIONAL (INDIA) SCENARIO OF INVESTMENT INDUSTRY:
• There are international headwinds for the economy, with predictions of a

looming recession and inflationary trends. India has withinside the beyond
weathered such monetary storms due to sturdy commercial enterprise basics.
In 2023, we are able to count on India to be a haven for investments no matter
those challenges. Indian startups have now started prioritising profitability and
are centered on getting their basics right. The attitudinal shift makes the Indian
startup environment appealing to buyers. India might also additionally see
100-plus matured, large-scale, worthwhile startupswithinside the subsequent 5
years, in keeping with a document through Redseer Strategy Consultants. About
20 of those startups are already being indexed and the others can examine an
IPO journey.
• Until 2021, buyers had a worry of lacking out and had made numerous
investments without due diligence. In 2022, we witnessed a slow shift
withinside the funding approach. In 2023, startups have to reveal how
differentiated they're. They need to display their scalability and capacity to
develop and display how they're decreasing coins burns.
• By 2022, venture capital firms have hoarded as much as $1.3 trillion in private
equity and $580 billion globally by some estimates. However, start-up funding
has slowed significantly.
• As investors aim to deploy capital next year, they are likely to be more selective
in their choices, focusing on startups with solid ideas and competent teams to
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build on. perform effectively. Only startups that meet these criteria are likely to
receive funding in 2023 and beyond. Investors will be cautious about the
presence of idle resources. Wish they were more meticulous in their due
diligence and only fund startups with a clear path to success.
• Funding currently occurs only when the startup can demonstrate a clear path to
monthly profitability. They are now asking startups to clarify metrics,
specifically the cost of acquiring a customer and the long-term value of their
product or service. Startups must now explain how they intend to profit from ad
spend and other such metrics. There is a lot of scrutiny by investors, which is a
sane approach to investing. This has had a positive impact on the ecosystem,
with startup founders paying more attention to business fundamentals in
addition to the solution they provide.
• The impact of the global recession will certainly be felt, but it may be limited to
mid-to-large startups looking for late-stage funding. The investment scenario
will be more difficult than it was two years ago as investors will focus on
startups that have proven strong indicators. We can expect some consolidation,
mostly among startups that cannot secure their funding at a later stage. With
investors becoming more diligent, we could see mergers and acquisitions
(M&A) happening this year.
• Technology Will Lead Healthnet, as an industry, has grown tremendously during

the COVID-19 pandemic. The sector is valued at INR 252.92 billion in 2021 and
is expected to reach INR 882.79 billion in fiscal 2027, a report by Markets and
Research shows. Startups working to gain better access to healthcare and
provide technology solutions to reduce costs will be of interest to investors in
2023.
• Startups that operate There's a lot to look forward to in the field of supply chain
optimization, warehousing and logistics. The sector has tremendous growth
potential, and with the changing geopolitical landscape, companies are
realizing that supply chains are becoming a competitive differentiator.
• The deep tech sector, where startups work on AI, blockchain, biotechnology,
robotics and quantum computing will also be key areas of investor interest.
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• Over the past two years, we've seen a number of tech giants explore the
potential of the metaverse. We can expect investors to be interested in startups
that work with the underlying technologies that enable metaverse development,
such as AR/VR and 3D development. Investor interest in fintech solutions could
also continue for much of the year. However, investors can be cautious in the
technology sector, as the education sector lies between online and traditional
classrooms.
• Now is a good time for Indian startups to step back and review their
fundamentals to stay relevant in the investment landscape. They need to ask
themselves the tough questions and figure out how to build a sustainable
business model. To get through next year, startups need to sit back and
manage growth and profitability expectations. They have to prove that they can
handle the money, that they are frugal, and that they can thrive even in tough
times.
• Additionally, Indian startups should also focus on diversifying their revenue

streams, building a loyal customer base and adapting to changing market
trends. It is also important for startups to have a clear vision and mission for
their company and communicate this effectively to investors and stakeholders.
3.3 STATE (GUJARAT) SCENARIO OF INVESTMENT INDUSTRY:
• Gujarat offers great opportunities for investment in the industrial sector. There
are opportunities to invest in new projects in petrochemical and downstream
industries, chemical sector including pharmaceuticals, engineering, ceramics,
agro-processing, IT and BT and infrastructure projects. The Gujarat Industrial
Development Board (GIDB) has also lined up a number of infrastructure
development projects.
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3.4 MAJOR PLAYERS ACCORDING TO CURRENT TREND:
• In INDIA, following sectors are in current trend:
1. Information Technology (IT)
2. FMCG (Fast-moving consumer goods)
3. Housing finance companies
4. Automobile Companies
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5. Infrastructure
6. Pharmaceuticals Stocks
• The twentieth century turned into the technology of production. From the
Nineteen Nineties to 2010, it turned into the time for the net boom. And
currently, it’s the time for statistics.
• As a fashionable be counted of fact, IT businesses are developing at a far

quicker fee in comparison to production businesses. And obviously,
professional personnel withinside the statistics era enterprise are incomes lots
extra than the ones withinside the conventional industries.
• There are many elements which might be boosting the boom of this enterprise
like technological advancement, monetary needs, the Indian authorities taking
useful decisions (virtual India), and many others.
• Considering those elements, the statistics era enterprise may be assumed to

maintain to grow. And therefore, IT shares may be handled as one of the
excellent sectors for lengthy-time period funding in India.
Infosys Ltd. 26.98
Tata Consultancy Services Ltd. 25.58
Tech Mahindra Ltd. 9.29
Wipro Ltd. 8.9
HCL Technologies Ltd. 8.53
Mindtree Ltd. 5.25
Table: 5.4.1 IT company share
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• A few of the predominant gamers withinside the IT Industry like TCS, Infosys,
WIPRO, HCL, Tech Mahindra, and many others have already mounted a terrific
logo fee and created massive wealth for his or her shareholders.
• Nonetheless, those businesses can nevertheless be taken into consideration as

a secure guess for the lengthy time period. However, in case you need
fast-developing shares with suitable upside potential, the mid-cap IT enterprise
shares are an outstanding suit for lengthy-time period funding in India.
• FMCG is the maximum protecting area for lengthy-time period funding in India.
Most of the goods on this Industry had been utilized by human beings for over
one hundred years and but will keep withinside the future.
• Few FMCG organizations like HUL, Dabur, Emami, ITC, Nestle, and so on are not
unusual place names in Indian houses. The majority of the human beings
dwelling in Indian cities/cities had been the use of their merchandise for a
completely lengthy time.
• During a recession or monetary crisis, humans might not purchase a brand-new

car or may not take new loans or keep away from making an investment in
actual estate/infrastructure, however due to the fact FMCG merchandise are
the simple necessities- their call for won’t lower as a whole lot in comparison to
the opposite industries.
• In the beyond few years, those agencies have additionally commenced

developing withinside the Indian rural regions/villages. Earlier, humans in rural
regions do now no longer like to apply the goods of FMCG agencies.
• However, the traits are converting those days. Therefore, those agencies have
an excellent boom possibility in the one’s regions area. If you're searching out a
secure enterprise to invest, then the FMCG enterprise is one of the high-quality
sectors for long-time period funding in India.
• The desk underneath lists the names of India’s high-quality FMCG stocks.
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Hindustan Unilever 620,000
ITC 386,000
Nestle India 187,500
Dabur India 104,000
Godrej Consumer Products 92,500
Britannia Industries 88,000
Table: 5.4.2 FMCG company share
• India is a growing country (in fact the fastest growing country in the world). And
housing finances companies or NBFC (Non-banking finance companies) are
going to play a crucial role in the growth story of India.
• This is easily one of the best sectors for long-term investment in India. Unlike
major public sector banking companies in India, housing finance companies
are performing well for the past many years and will continue to do so.
• They have actually low NPAs (Non-performing Assets) when compared to the
PSU banks. Few major players in this industry can be HDFC, LIC Housing
Finance, India bulls Housing Finance, GRUH Finance, and DHFL.
• According to a CNBC report- The world’s fleet of electrical cars grew fifty-four
percentage to approximately 3.1 million in 2017. The forecasted wide variety of
electrical cars on the street round the sector will hit a hundred twenty-five
million with the aid of using 2030.
Maruti Suzuki India Ltd. 19.55
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Mahindra & Mahindra Ltd. 18.68
Tata Motors Ltd. 13.51
Bajaj Auto Ltd. 8.54
Eicher Motors Ltd. 7.23
Hero MotoCorp Ltd 6.14
Table: 5.4.4 Automobile Company share
• When you visit an advanced country, what's the primary factor which you notice?
Big buildings, towers, flyovers, and many others, right?
• For developing international locations like India, the increase in infrastructure is

the fastest. You may have already observed the non-stop paintings in
constructing new airports, railway stations, metro, and many others in India.
• Infrastructure organizations are the important thing gamerswithinside the

developing international locations and as a result are glaringly this zone of the
pleasant sectors for the long-time period funding in India. Few principal gamers
on this enterprise are L&T, Adani Ports, GVK Infra, and many others.
• It’s definitely not possible to disregard the pharmaceutical enterprise whilst we

speak the long-time period. Although this region is withinside the endure
segment for the previous couple of years, however, they're among the quality
sectors for long-time period funding in India.
• Many of those organizations are continually growing better & reasonably-priced

tablets and also are getting aid from the government. A few of the principal
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gamers on this enterprise are Lupin, Sun Pharma, GlenmarkPharma,
AurobindoPharma, etc.
Sun Pharmaceutical Industries Ltd. 24.05
Cipla Ltd. 12.48
Dr. Reddy's Laboratories Ltd 11.74
Divi's Laboratories Ltd. 11.53
Laurus Labs Ltd. 4.84
Alkem Laboratories Ltd. 3.73
Table: 5.4.6 Pharmaceuticals company share
3.5 PESTLE ANALYSIS OF INVESTMENT INDUSTRY:
• PESTEL stands for - Political, Economic, Social, Technological, Environmental &

Legal factors that impact the macro environment of Investment industry.
Services industry throughout numerous nations is to diversify the systematic dangers

of political environment. Investment industry can intently examine the subsequent
elements earlier than getting into or making an investment in a certain market-
• Political balance and significance of Financial Services region withinside the

country's economy.
• Risk of army invasion
• Level of corruption - specially degrees of law in Financials region.
• Bureaucracy and interference in Financial Services enterprise through

government.
• Legal framework for agreement enforcement
• Intellectual belongings protection
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• Trade policies & price lists associated with Financials
• Favoured buying and selling partners
• Anti-accept as true with legal guidelines associated with Financial Services
• Pricing policies – Are there any pricing regulatory mechanism for Financials
• Taxation - tax costs and incentives
• Wage legislation - minimal salary and overtime
• Work week policies in Financial Services
• Mandatory worker benefits
• Industrial protection policies withinside the Financials region.
• Product labelling and different necessities in Financial Services
The Macro environment factors such as – inflation rate, savings rate, interest rate,
foreign exchange rate and economic cycle determine the aggregate demand and
aggregate investment in an economy. Economic factors that Investment industry
should consider while conducting PESTEL analysis are –
• Type of economic system in countries of operation – what type of economic

system there is and how stable it is.
• Government intervention in the free market and related Financials
• Exchange rates & stability of host country currency.
• Efficiency of financial markets – Does Investment industry needs to raise

capital in local market?
• Infrastructure quality in Financial Services and investment industry
• Comparative advantages of host country and Financials sector in the particular

country.
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• Skill level of workforce in Financial Services and investment industry.
• Education level in the economy
• Labour costs and productivity in the economy
• Business cycle stage (e.g., prosperity, recession, recovery)
• Economic growth rate
• Discretionary income
• Unemployment rate
• Inflation rate
• Interest rates
Society’s way of life and manner of doing matters effect the way of life of a company
in an environment. Shared ideals and attitudes of the populace play a top not position
in how entrepreneurs at Investment industry will apprehend the clients of a given
marketplace and the way they layout the advertising and marketing message for
Financial Services and investment enterprise consumers. Social elements that
management of Investment industry ought to examine for PESTEL evaluation are –
• Demographics and ability degree of the population
• Class shape, hierarchy and electricity shape withinside the society.
• Education degree in addition to schooling fashionable withinside the

Investment industry.
• Culture (gender roles, social conventions etc.)
• Entrepreneurial spirit and broader nature of the society. Some societies inspire
entrepreneurship at the same time as a few don’t.
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• Attitudes (health, environmental consciousness, etc.)
A firm should not only do technological analysis of the industry but also the speed at
which technology disrupts that industry. Technology analysis entails information the
subsequent impacts -
• Recent technological tendencies with the aid of using Investment industry

competitors
• Technology's effect on product offering
• Impact on price shape in Financial Services industry
• Impact on rate chain shape in Financials sector
• Rate of technological diffusion
Different markets have one-of-a-kind norms or environmental requirements that could

affect the profitability of an organisation in the ones markets. Even inside a rustic
frequently states will have one-of-a-kind environmental legal guidelines and legal
responsibility legal guidelines. Before coming into new markets or beginning a
brand-new enterprise in present marketplace the company have to cautiously examine
the environmental requirements which might be required to perform in the ones
markets. Some of the environmental elements that a company have to don't forget in
advance are -
• Weather
• Climate change
• Laws regulating surroundings pollutants
• Air and water pollutants policies in Financial Services industry
• Recycling
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• Waste control in Financials sector
In quantity of countries, the criminal framework and establishments aren't sturdy

sufficient to defend the highbrow assets rights of an organization. A company need to
cautiously examine earlier than getting into such markets as it is able to cause robbery
of organization’s mystery sauce as a result the general aggressive edge. Some of the
criminal elements that Investment industry management need to don't forget even as
getting into a brand-new marketplace are -
• Anti-believe regulation in Financial Services enterprise and ordinary withinside

the country.
• Discrimination regulation
• Copyright, patents / Intellectual assets regulation
• Consumer safety and e-commerce
• Employment regulation
• Data Protection
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CHAPTER-3
LITERATURE REVIEW
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According to Dr Anju Singh (2018) in her research paper;
According to behavioural economists, investor behaviour is influenced by their

behavioural tendencies rather than being rational as has been historically believed.
Making illogical investment decisions may involve cognitive and emotional factors.
The goal of the current study is to provide a comprehensive grasp of behavioural
finance and the different psychological elements that influence female investors'
investment decisions. A survey comprising 28 questions was devised in order to look
for signs of behavioural biases in the investment choices made by female investors.
Responses were collected from 48 female investors in Jaipur. The paper comes to the
conclusion that a few biases that affect investment decisions include the herd
mentality, mental accounting, optimism, and anchoring.
According to Shilpa Jain and ShivaniAnand (2020) in their research paper;
This study aims to investigate the relationship between locus of control and emotional
and cognitive behavioural biases in investor decision-making. Three stages made up
our research. First, they conducted a thorough assessment of the literature to pinpoint
20 biases that frequently affect investor decision-making. At the second stage, they
looked into each bias separately in order to recognize them and create tools to
measure them when investors make decisions. Some of these biases were grouped
together during the pilot phase on the basis of exploratory factor analysis. To create a
validated tool for assessing these biases, confirmatory factor analysis was used. At
stage three, a group of investors from throughout the nation were given the finalized
questionnaire and Levenson's locus of control.
Imran Arshad (2019)
The goal of this study is to give a model of the decision-making process for
investments. A thorough analysis of the literature revealed that consumer behaviour
was rarely included when looking at individual investors. Instead, behavioural finance
and social psychological perspectives were used. This research combines behavioural
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finance, consumer behaviour, and social psychological views to fill in the gaps and
develop a model to explain investors' decision-making. This study also suggested that
perceived risk has a moderating effect on the correlation between consumer
behaviour, investment intentions, and behavioural finance characteristics. The planned
behaviour theory, social cognitive theory, and prospect theory are the foundations of
this study. The information was gathered through survey questionnaires that
employees from various Pakistani organisations had to fill out. Using SmartPLS, the
data that was gathered was examined. After doing initial tests and testing hypotheses,
548 observations were deemed to be helpful. The measuring model ensures the focus
constructs' validity and dependability.
According to the results of the hypothesis testing, factors that appear to have a
substantial impact on investment intentions are uncertainty avoidance,
overconfidence, product knowledge, product participation, perceived behavioural
control, and subjective norm.
Purnima M. Chouhan (2019)
This study examines the impact of Big Five personality levels on determinants of risk
behaviour in investment decisions. It provides a meaningful contribution to the
existing literature, as no studies have simultaneously investigated the effects of
personality traits on risk attitudes, risk perceptions, and return expectations in
investment decisions. Using a proprietary dataset containing his 100 private investors
in the South Gujarat region. It is therefore possible to determine which determinants of
risk-taking are influenced by the Big Five traits and induce individuals to take
investment risks. Five major traits were found to influence her risk attitudes. Highly
extroverted individuals are less risk averse than less extroverted individuals, and highly
neurotic individuals are more risk averse than less neurotic individuals. Personal
personality should be considered as an influencing factor.
Warren Bailey, Alok Kumar, David Ng (2011)
The study examines the impact of behavioural biases on mutual fund selection for a
large sample of US investors in discount brokerage businesses and develop new
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measures of news attention, tax awareness, and familiarity biases at fund level. Use
previous studies in addition to behavioural and demographic characteristics.
Behaviourally biased investors typically make poor decisions about fund style and
cost, frequency and timing of trades, resulting in poor performance. Moreover,
trend-following appears to be more associated with behavioural biases than rational
inferences about management skills from past performance. Analysis of the factor
suggests that biased investors often follow stereotypes characterized as gamblers,
clever, overconfident, narrow-minded framers, and mature.
JoyitaBanerji (2020)
Standard investment theory assumes that all investors are the same and have the
same motives for investing. Investor sentiment can affect stock returns, and stocks
favoured by retail investors are sensitive to slight shifts in investor sentiment.
Behavioural finance offers another explanation for behaviour that traditional
economics fails to address. It is unlikely that all investors will react in the same way to
all biases. Some investors may not subscribe to certain prejudices. A better
understanding of how economic decisions are made can help investors make better
decisions. This study delves further into investigating whether the proposed -group
aversion, mental accounting, attitude, and interpretation biases apply in practice.
Standard investment theory assumes that all investors are the same and have the
same motives for investing. Investor sentiment can affect stock returns, and stocks
favoured by retail investors are sensitive to slight shifts in investor sentiment.
Behavioural finance offers another explanation for behaviour that traditional
economics fails to address. It is unlikely that all investors will react in the same way to
all biases. Some investors may not subscribe to certain prejudices. A better
understanding of how economic decisions are made can help investors make better
decisions. This study delves further into investigating whether the proposed -group
aversion, mental accounting, attitude, and interpretation biases apply in practice.
Sukanya. R (2015)
This article introduces a new approach in analysing portfolio investment decisions:

behavioural finance. Behavioural finance is the study of the influence of psychological
factors on the development of financial markets. Psychology, including aspiration,
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cognition, emotion, and culture, is at the core of behavioural funding. The behavioural
finance paradigm suggests that investment decisions are largely influenced by
psychological and emotional factors. They know that investors do not always act
rationally or consider all available information in their decision-making process. As a
result, they regularly make mistakes. Also, the mistakes they make are found to repeat
in the same way and are called, hence systematic errors. Fortunately, due to this
systematic nature, these errors are often predictable and avoidable. Common
mistakes they make are also called behavioural biases, among which are
overconfidence, fixation, grazing, regret, disgust, misunderstanding, randomness,
mental speculation, and representativeness. Behavioural biases in investment
decisions.
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CHAPTER-4
RESEARCH METHODOLOGY
Page 42 of 117
4.1 PROBLEM STATEMENT:
• In this study the problem is the "Impact of Behavioural Biases on investment

intention of investors in Surat city " The current examination considers various
Behavioural determinants (Confidence Bias, Disposition effect, Herd Mentality,
Loss Aversion bias, group think, representativeness, confirmation, familiarity
bias, framing bias, etc.) to investigate their impact on purchase intention of
investors to invest in stock market.
• The present investigation endeavours to recognize the undiscovered zones of

Surat city, where the effect of behavioural biases is sawn in investment
decision of investors.
4.2 RESEARCH OBJECTIVE:
• To study behavioural biases affecting investment decisions.
• To study the factors affecting the investment decision.
• To study the impact of demographic profile on various factors affecting the

behavioural biases of investment decisions.
• To study the impact of behavioural biases on investment intention of investors

in Surat city.
4.3 RESEARCH DESIGN:
• Types of research design:
1. Exploratory research:
2. Descriptive research:
3. Causal research:
• From the above types we have used descriptive research design to study the
impact of behavioural biases on investment intention of investors.
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4.4 SAMPLE DESIGN:
non probability sampling method is used for this study because of the researcher
collect the data according to their convenience timing, data availability.
• A total 201 respondents filled the survey, with varied demographics like-
• To study the impact of behavioural biases on investment intention of investors

only in Surat city.
• Sample were collected by questionnaire.
• Samples are taken within Surat city only.
• Samples are taken from those people only who are investing in stock market
only.
• Sample fame is not available.
4.5 DATA COLLECTION SOURCE:
• Researcher has used primary data for this study: For the primary data, data
were collected with the help of filling questionnaire by Internet based (google
form).
4.6 DATA COLLECTION METHOD:
• For the research we used basically two methods for data collection which were
as follows:
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Here online responses via google form and physical
questionnaire were used to collect primary data.
The secondary data for the study was carried out from
the search engine like- google, google scholar and only scientific papers,
articles and websites were included like- IBEF, emarketer.com, Wikipedia.
4.7 INSTRUMENT AND TOOL FOR ANALYSIS:
• For the analysis of our study and conclude our data’s output, we were used
spss software to analysis and conclude our primary data.
4.8 BENEFITS OF THE STUDY:
• You could know the actual perception / intention of investors regarding

behavioural biases.
• It would help us to know or find new opportunities.
• It would also help us to know what you were up against
• It would also expand our knowledge data base.
4.9 LIMITATIONS OF THE STUDY:
• There are also some limitations of this study as follow:
1. The data are collected based on convenience sampling like convenience

timing & validity.
2. The sample size is very small.
3. Only used primary data for analysis of the study.
4. The sampling frame is not available.
4.10 SCOPE OF THE STUDY:
• To examine how much behavioural biases impact the investor to make

decisions.To know the investors perception for investment in Surat city.
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CHAPTER 5
DATA ANALYSIS
Page 46 of 117
The demographic analysis stated that gander, age, education level, monthly income
level and occupation strongly influence the investment decision making of individual
investors while making investment.(objective=3)
1. What is your main objective for investment?
What is your main objective for investment?
Frequency Percent Valid Cumulative

Percent Percent
savings 73 36.3 36.3 36.3
tax benefit 27 13.4 13.4 49.8
wealth 60 29.9 29.9 79.6

maximization
Valid
save for 38 18.9 18.9 98.5
retirement
other 3 1.5 1.5 100.0
Total 201 100.0 100.0
Table: 6.1 What is your main objective for investment?
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Figure: 6.1 What is your main objective for investment?
• In 201 respondents,
• 73 were investing for savings.
• 27 were investing for tax benefits.
• 60 were investing for wealth maximization.
• 38 were investing for their retirement plan.
• And 3 were investing with other reasons.
2. I do invest in...
I do invest in...

Percent Percent
SIP 87 43.3 43.3 43.3
Spot Market 41 20.4 20.4 63.7
Derivatives 10 5.0 5.0 68.7

Valid
Mutual 63 31.3 31.3 100.0
Funds
Total 201 100.0 100.0
Table:6.2 I do invest in...
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Figure: 6.2 I do invest in...
• In this sample, with 201 respondents,
• 87 with 43.3% were investing in SIP.
• 41 with 20.4% were investing in Spot Market.
• 10 with 5% were investing in Derivatives.
• 63 with 31.3% were investing in Mutual Funds.
3. I use the information as most people e.g., company profit.
I use the same information as most people e.g., company profit

Percent Percent
Strongly Agree 30 14.9 14.9 14.9
Agree 82 40.8 40.8 55.7

Valid
Neutral 44 21.9 21.9 77.6
Disagree 29 14.4 14.4 92.0
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Strongly 16 8.0 8.0 100.0
Disagree
Total 201 100.0 100.0
Table: 6.3 I use the information as most people e.g., company profit.
• With 201 respondents,
• 30 respondents with 14.9% were strongly agree with this statement.
• 82 respondents with 40.8% were agreeing with this statement.
• 44 respondents with 21.9% were neutral with this statement.
• 29 respondents with 14.4% were disagreeing with this statement.
• 16 with 8.0% were strongly disagreeing with this statement.
4. If many people rely on a certain kind of information (e.g., return on assets) then
it’s likely that the information is reliable.
If many people rely on a certain kind of information (e.g., return on

assets) then it’s likely that the information is reliable
Frequenc Percent Valid Cumulative

y Percent Percent
Agree 93 46.3 46.3 56.7
Neutral 47 23.4 23.4 80.1

Valid
Disagree 36 17.9 17.9 98.0
Strongly 4 2.0 2.0 100.0

Disagree
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Total 201 100.0 100.0
Table: 6.4 If many people rely on a certain kind of information (e.g., return on assets)
then it’s likely that the information is reliable
• 4 respondents with 2.0% were strongly disagreeing with this statement.
5. In time of uncertainty in the market, I will mostly do what other people are doing
In time of uncertainty in the market, I will mostly do what other people

are doing

Percent Percent
Agree 66 32.8 32.8 46.3
Neutral 48 23.9 23.9 70.1
Valid Disagree 42 20.9 20.9 91.0
Strongly 18 9.0 9.0 100.0

Disagree
Total 201 100.0 100.0
Table: 6.5 In time of uncertainty in the market, I will mostly do what other people are
doing
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6. I'm likely to copy the investing decision made by people that I know
I'm likely to copy the investing decision made by people that I know

Percent Percent
Agree 71 35.3 35.3 48.3
Neutral 48 23.9 23.9 72.1
Strongly 12 6.0 6.0 100.0

Disagree
Total 201 100.0 100.0
Table: 6.6 I'm likely to copy the investing decision made by people that I know
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7. I'm generally very good at reading trends in the market
I'm generally very good at reading trends in the market

Percent Percent
Agree 85 42.3 42.3 56.2
Neutral 58 28.9 28.9 85.1
Strongly 10 5.0 5.0 100.0

Disagree
Total 201 100.0 100.0
Table: 6.7 I'm generally very good at reading trends in the market
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8. I am generally better than other investors when it comes to reading trends in

the market
I am generally better than other investors when it comes to reading

trends in the market

Percent Percent
Agree 77 38.3 38.3 54.7
Neutral 56 27.9 27.9 82.6
Strongly 6 3.0 3.0 100.0

Disagree
Total 201 100.0 100.0
Table:6.8 I am generally better than other investors when it comes to reading trends in
the market
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9. I generally don't need the services of a financial planner when investing in

financial products
I generally don't need the services of a financial planner when

investing in financial products

Percent Percent
strongly agree 24 11.9 11.9 11.9
agree 78 38.8 38.8 50.7
neutral 53 26.4 26.4 77.1
Valid disagree 32 15.9 15.9 93.0
strongly 14 7.0 7.0 100.0

disagree
Total 201 100.0 100.0
Table: 6.9 I generally don't need the services of a financial planner when investing in
financial products
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10. I prefer low-risk investments over risky investments, even if their returns are low
I prefer low-risk investments over risky investments, even if their

returns are low

Percent Percent
agree 87 43.3 43.3 59.2
neutral 54 26.9 26.9 86.1
strongly 8 4.0 4.0 100.0

disagree
Total 201 100.0 100.0
Table 6.10 I prefer low-risk investments over risky investments, even if their returns are
low
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11. I readily sell shares that have increased in value
I readily sell shares that have increased in value

Percent Percent
agree 77 38.3 38.3 53.7
neutral 60 29.9 29.9 83.6
strongly 9 4.5 4.5 100.0

disagree
Total 201 100.0 100.0
Table: 6.11 I readily sell shares that have increased in value

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12. after a prior loss, I become more risk-averse
after a prior loss, I become more risk-averse

Percent Percent
strongly 35 17.4 17.4 17.4

disagree
agree 69 34.3 34.3 51.7
neutral 56 27.9 27.9 79.6

Valid
disagree 30 14.9 14.9 94.5
strongly 11 5.5 5.5 100.0

disagree
Total 201 100.0 100.0
Table: 6.12 after a prior loss, I become more risk-averse
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13. I buy "hot" stocks and avoid stocks that have performed poorly
I buy "hot" stocks and avoid stocks that have performed poorly
recently

Percent Percent
agree 69 34.3 34.3 50.2
neutral 60 29.9 29.9 80.1
strongly 9 4.5 4.5 100.0

disagree
Total 201 100.0 100.0
Table: 6.13 I buy "hot" stocks and avoid stocks that have performed poorly recently
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14. I use trend analysis to make investment decision
I use trend analysis to make investment decision

Percent Percent
agree 97 48.3 48.3 62.7
neutral 46 22.9 22.9 85.6
strongly 5 2.5 2.5 100.0

disagree
Total 201 100.0 100.0
Table: 6.14 I use trend analysis to make investment decision
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15. I buy the new equity offering of the company I have already invested in
I buy the new equity offering of the company I have already invested
in

Percent Percent
agree 82 40.8 40.8 56.2
neutral 53 26.4 26.4 82.6
strongly 11 5.5 5.5 100.0

disagree
Total 201 100.0 100.0
Table: 6.15 I buy the new equity offering of the company I have already invested in
16. I appear to believe that past return is indicative of future returns
I appear to believe that past return is indicative of future returns
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Percent Percent
Valid strongly agree 30 14.9 14.9 14.9
agree 96 47.8 47.8 62.7
neutral 48 23.9 23.9 86.6
disagree 18 9.0 9.0 95.5
strongly 9 4.5 4.5 100.0

disagree
Total 201 100.0 100.0
Table: 6.16 I appear to believe that past return is indicative of future returns
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17. My trading is affected by recent experience in the market
My trading is affected by recent experience in the market

Percent Percent
agree 95 47.3 47.3 64.2
neutral 39 19.4 19.4 83.6
strongly 7 3.5 3.5 100.0

disagree
Total 201 100.0 100.0
Table: 6.17 My trading is affected by recent experience in the market
• 7 respondents with 3.5 % were strongly disagreeing with this statement.
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18. I use the purchase price of the stock as reference points in trading
I use the purchase price of the stock as reference points in trading

Percent Percent
agree 93 46.3 46.3 61.7
neutral 56 27.9 27.9 89.6
strongly 6 3.0 3.0 100.0

disagree
Total 201 100.0 100.0
Table: 6.18 I use the purchase price of the stock as reference points in trading
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19. I usually rely on experience in the market for my next investment
I usually rely on experience in the market for my next investment

Percent Percent
agree 83 41.3 41.3 58.2
neutral 54 26.9 26.9 85.1
strongly 12 6.0 6.0 100.0

disagree
Total 201 100.0 100.0
Table: 6.19 I usually rely on experience in the market for my next investment
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20. Before buying a share, I ignore the market information that conflates with mine.
Before buying a share, I ignore the market information that conflates

with mine.

Percent Percent
agree 71 35.3 35.3 50.2
neutral 48 23.9 23.9 74.1
strongly 13 6.5 6.5 100.0

disagree
Total 201 100.0 100.0
Table: 6.20 Before buying a share, I ignore the market information that conflates with
mine.
Page 66 of 117
21. Before buying a share, I appreciate the market information that supports mine
Before buying a share, I appreciate the market information that

supports mine

Percent Percent
agree 103 51.2 51.2 62.2
neutral 51 25.4 25.4 87.6
strongly 12 6.0 6.0 100.0

disagree
Total 201 100.0 100.0
Table: 6.21 Before buying a share, I appreciate the market information that supports
mine
Page 67 of 117
22. To support all information which is I predication
To support all information which is I predication

Percent Percent
agree 83 41.3 41.3 57.2
neutral 61 30.3 30.3 87.6
strongly 8 4.0 4.0 100.0

disagree
Total 201 100.0 100.0
Table: 6.22 To support all information which is I predication
Page 68 of 117
23. Gender: 1. Male, 2. Female, 3. Other.
Gender 1. Male, 2 Female, 3 other

Percent Percent
Male 125 62.2 62.2 62.2
Valid Female 76 37.8 37.8 100.0
Total 201 100.0 100.0
Table: 6.23 Gender 1. Male, 2 Female, 3 other
Figure: 6.23 Gender 1. Male, 2 Female, 3 other
• 125 – 62.2% investors were male.
• And 76 – 37.8% investors were female.
Page 69 of 117
24. Age:
Age
Frequenc Percent Valid Cumulative
y Percent Percent
15-25 98 48.8 48.8 48.8
26-35 60 29.9 29.9 78.6
36-45 22 10.9 10.9 89.6
Valid
46-55 16 8.0 8.0 97.5
>56 5 2.5 2.5 100.0
Total 201 100.0 100.0
Table: 6.24 age
Figure: 6.24 age
• 98 investors were age gap between 15-25.
• 5 investors were age gap more than 56.
Page 70 of 117
25. Monthly Income:
Monthly Income

Percent Percent
<10000 58 28.9 28.9 28.9
10000-2000 31 15.4 15.4 44.3

0
20000-3000 42 20.9 20.9 65.2

0
Valid 30000-4000 33 16.4 16.4 81.6

0
40000-5000 16 8.0 8.0 89.6

0
>50000 21 10.4 10.4 100.0
Total 201 100.0 100.0
Table: 6.25 monthly income
Figure: 6.25 monthly income
Page 71 of 117
• 58 investors income were less than 10000.
• 31 investors income were between 10000-20000.
• 16 investors income were between 40000-50000
• 21 investors income were more than 50000.
26. Occupation:
Occupation 1 student, 2 Business, 3 service, 4 home maker, 5

retired

Percent Percent
student 82 40.8 40.8 40.8
business 41 20.4 20.4 61.2
service 68 33.8 33.8 95.0

Valid
home maker 9 4.5 4.5 99.5
retired 1 .5 .5 100.0
Total 201 100.0 100.0
Table: 6.26 occupation
Page 72 of 117
Figure: 6.26 occupation
• 82 investors were student.
• 41 were businessmen.
• 68 investors were from service sector.
• 9 were homemakers.
• And 1 is retired person.
27. Education:
Education Qualifications 1 school, 2 Graduation, 3 post-graduation,

4 professional, 5 other

Percent Percent
school 22 10.9 10.9 10.9

Valid
graduation 85 42.3 42.3 53.2
Page 73 of 117
post-graduatio 73 36.3 36.3 89.6
n
professional 21 10.4 10.4 100.0
Total 201 100.0 100.0
Table: 6.27 education
Figure: 6.27 education
• 22 qualified from school.
• 85 were qualified as graduate persons.
• 73 were qualified as post graduate.
• And 21 investors from professional background.
Page 74 of 117
KRUSKAL-WALLIST TEST:
A Kruskal-Wallis Test is used to determine whether or not there is a statistically
significant difference between the medians of three or more independent groups.
Gender Age Monthly Occupation Education

Income Qualifications
532 532 193 193 921.5
532 193 193 193 780.5
193 193 193 193 780.5
193 193 193 193 532
532 193 193 193 780.5
532 193 193 193 780.5
193 193 532 193 532
193 193 193 193 532
193 193 193 193 193
193 193 193 193 780.5
193 193 193 193 193
193 532 921.5 780.5 532
193 921.5 780.5 532 780.5
532 193 532 193 532
532 193 780.5 780.5 532
193 193 921.5 193 780.5
532 532 532 780.5 780.5
193 193 532 193 780.5
Page 75 of 117
193 193 193 193 532
532 193 193 193 780.5
193 780.5 780.5 532 532
193 193 193 193 780.5
532 193 780.5 193 780.5
193 193 972.5 193 780.5
532 532 532 780.5 780.5
193 532 995 532 921.5
193 532 972.5 780.5 780.5
193 532 532 193 532
532 193 193 193 780.5
193 193 193 532 532
193 193 995 193 780.5
193 193 921.5 193 780.5
193 532 780.5 780.5 532
532 193 780.5 193 780.5
532 193 193 193 532
193 193 193 532 193
532 193 972.5 193 780.5
193 532 995 193 780.5
193 532 193 193 780.5
193 532 193 921.5 921.5
532 193 780.5 193 780.5
Page 76 of 117
193 532 193 193 532
532 193 193 193 780.5
193 193 995 532 780.5
193 193 532 780.5 532
193 532 532 780.5 532
193 532 532 780.5 193
193 193 780.5 780.5 532
193 193 532 780.5 532
193 532 532 780.5 193
193 532 972.5 532 532
532 193 780.5 780.5 780.5
532 532 532 780.5 193
193 532 921.5 780.5 532
193 532 532 780.5 193
193 532 972.5 780.5 780.5
193 193 193 193 780.5
193 193 532 193 780.5
532 193 780.5 193 532
193 780.5 780.5 532 532
532 921.5 193 921.5 532
532 193 532 780.5 532
532 780.5 532 921.5 780.5
532 193 193 193 780.5
Page 77 of 117
193 193 921.5 193 780.5
532 532 995 780.5 780.5
193 193 780.5 193 780.5
532 532 780.5 780.5 532
193 193 193 193 780.5
193 193 193 193 780.5
532 193 780.5 532 780.5
193 193 193 193 193
532 193 193 193 532
532 193 780.5 780.5 532
193 532 780.5 780.5 972.5
532 193 193 532 193
532 780.5 921.5 921.5 532
193 972.5 921.5 780.5 532
532 193 193 193 532
532 193 193 193 532
532 193 780.5 193 780.5
193 193 193 193 780.5
532 193 532 780.5 532
532 193 780.5 193 780.5
193 193 193 193 780.5
193 780.5 921.5 780.5 780.5
193 532 921.5 780.5 532
Page 78 of 117
193 780.5 780.5 780.5 972.5
532 193 532 193 780.5
193 193 995 193 532
193 193 193 532 780.5
193 921.5 995 532 532
193 921.5 921.5 780.5 532
193 193 193 193 921.5
193 532 780.5 532 532
193 532 995 193 780.5
193 193 780.5 193 780.5
193 780.5 532 780.5 193
532 193 193 193 532
193 193 972.5 532 780.5
193 921.5 921.5 780.5 532
193 193 193 193 532
532 780.5 193 921.5 532
193 193 193 193 532
193 532 780.5 532 780.5
532 193 193 193 193
532 193 193 193 532
532 193 193 193 780.5
532 193 193 193 780.5
193 532 780.5 780.5 193
Page 79 of 117
193 780.5 972.5 532 193
193 780.5 921.5 780.5 193
532 972.5 995 532 921.5
532 532 780.5 780.5 532
193 780.5 995 532 532
193 532 972.5 780.5 921.5
532 532 780.5 780.5 532
193 532 780.5 780.5 532
193 780.5 921.5 532 193
193 972.5 193 972.5 193
532 193 532 193 532
193 532 780.5 780.5 780.5
193 193 193 193 532
193 532 921.5 532 532
193 780.5 972.5 532 193
532 532 780.5 780.5 780.5
193 532 921.5 780.5 780.5
193 193 532 193 532
193 193 780.5 780.5 780.5
193 193 193 193 780.5
532 780.5 193 921.5 532
193 921.5 921.5 780.5 193
193 193 193 193 532
Page 80 of 117
532 193 532 193 780.5
532 532 780.5 780.5 532
193 193 921.5 532 532
193 532 972.5 532 532
532 532 780.5 780.5 780.5
532 532 780.5 921.5 532
193 921.5 972.5 780.5 532
193 921.5 995 532 532
532 780.5 193 921.5 193
532 532 532 921.5 532
193 193 532 193 780.5
193 193 193 193 532
193 193 193 193 780.5
193 193 193 193 780.5
193 193 193 193 532
193 193 193 193 532
193 193 193 193 532
532 193 193 193 532
532 193 193 193 532
193 193 532 193 532
532 193 193 193 780.5
193 532 921.5 532 780.5
532 780.5 780.5 780.5 532
Page 81 of 117
193 532 780.5 780.5 532
193 972.5 995 780.5 532
532 921.5 995 780.5 780.5
532 972.5 921.5 780.5 921.5
193 780.5 921.5 780.5 921.5
193 532 995 532 921.5
193 921.5 995 532 921.5
193 921.5 972.5 532 921.5
532 921.5 995 532 921.5
193 532 972.5 780.5 780.5
193 193 532 532 780.5
193 193 921.5 532 780.5
532 193 780.5 780.5 780.5
532 921.5 995 532 921.5
193 532 921.5 780.5 532
532 532 780.5 780.5 532
532 532 532 780.5 532
532 193 532 193 532
193 193 921.5 193 532
532 532 780.5 780.5 193
193 532 532 780.5 532
193 780.5 921.5 780.5 193
532 193 532 193 532
Page 82 of 117
532 532 921.5 780.5 921.5
532 532 921.5 780.5 921.5
193 532 780.5 532 532
193 532 921.5 532 532
193 193 532 193 532
193 532 972.5 193 921.5
532 780.5 921.5 780.5 921.5
532 193 780.5 532 780.5
193 193 995 193 921.5
193 193 780.5 780.5 532
532 532 921.5 532 921.5
193 780.5 972.5 532 780.5
193 780.5 995 532 193
193 532 921.5 532 532
193 921.5 995 532 532
193 921.5 972.5 780.5 780.5
532 532 921.5 780.5 780.5
193 193 780.5 780.5 780.5
532 532 780.5 780.5 532
532 780.5 921.5 780.5 921.5
193 532 995 532 532
193 921.5 921.5 780.5 532
Page 83 of 117
R 64557 87611.5 127331.5 99978 126037
N 201 201 201 201 201
R^2/N 20734359.4 38187934.99 80663238.27 49729355.6 79031469.5
n 1005
k 5
H 167.025463
p- Value 0.082085
Table: 6.28 Kruskal-Wallis test
• The test statistic is H = 167.025463 and the corresponding p-value is p =

0.82085. Since this p-value is more than 0.05, we could failed to reject the null
hypothesis that the investment decision not depend on demographic profile of
investors. We had sufficient evidence to conclude that the there would be an
impact of demographic profile on various factors affecting the behavioural
biases of investment decisions.
• A Kruskal-Wallis Test was performed to determine if there would be an impact

of demographic profile on various factors affecting the behavioural biases of
investment decisions. A total of 1005 investores were used in the analysis.
Each investors information was applied to 201 different variables.
• The test revealed that there would be an impact of demographic profile on

various factors affecting the behavioural biases of investment decisions (H =
167.02546, p = 0.082085) among the 5 different variables- age , gender,
occupation, monthly income, education qualification. That is, there was not a
statistically significant difference in 5 different variables- age , gender,
occupation, monthly income, education qualification and investment decision
of investors influenced with behavioural biases.
Page 84 of 117
I use my own predictive skills to
413**
outperform the market trends
201
.000
I am generally better than other investors
when it comes to reading trends in the
.464**
market
201
.000
I generally don't need the services of a
financial planner when investing in
.368**
financial products
201
.000
I prefer low-risk investments over risky
investments, even if their returns are low
.382**
201
.000
I readily sell shares that have increased in
.417**
value
201
.000
after a prior loss, I become more
risk-averse
.366**
201
.000
I buy "hot" stocks and avoid stocks that
.384**
have performed poorly recently
201
.000
CORRELATION ANALYSIS:
I use trend analysis to make investment
.365**
decision
201
.000
I buy the new equity offering of the
.359**
company I have already invested in
201
.000
I appear to believe that past return are
indicative of future returns
.389**
201
.000
My trading is affected by recent experience
in the market
.403**
201
.000
I use the purchase price of the stock as
.385**
reference points in trading
201
.000
I usually rely on experience in the market
.456** for my next investment
201
.000
Before buying a share, I ignore the market
.174*
information that conflates with mine.
201
.014
variables which are measured at the ordinal or higher level of measurement.
Before buying a share, I appreciate the

.444**
201
.000
market information that supports mine
To support all information which is I

predication
.429**
Correlation refers to a process for establishing the relationships between two
to plot them on a “scatter plot”. While there are many measures of association for
variables. We can get a general idea about whether or not two variables are related, is
201
.000
Page 85 of 117
520** .452** .401** .329** .454** .315** .444** .318** .406** .465** .445** .376** .382** .258** .359** .404**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 86 of 117
305** .477** .479** .396** .420** .469** .469** .175* .308** .361** .270** .377** .391** .394** .207** .262**
.000 .000 .000 .000 .000 .000 .000 .013 .000 .000 .000 .000 .000 .000 .003 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 87 of 117
308** .496** .455** .389** .488** .463** .512** .259** .357** .444** .371** .362** .437** .468** .277** .279**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 88 of 117
630** .522** .489** .423** .396** .446** .418** .499** .457** .389** .482** .378** .511** .232** .456** .422**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .001 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 89 of 117
1 .453** .541** .417** .555** .448** .497** .487** .463** .493** .486** .331** .465** .240** .561** .521**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .001 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 90 of 117
453** 1 .603** .480** .546** .563** .521** .445** .547** .495** .489** .465** .425** .472** .379** .430**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 91 of 117
541** .603** 1 .538** .499** .545** .509** .315** .467** .484** .462** .283** .529** .365** .372** .330**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 92 of 117
417** .480** .538** 1 .556** .564** .540** .492** .356** .602** .524** .458** .491** .342** .464** .367**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 93 of 117
555** .546** .499** .556** 1 .493** .652** .396** .430** .549** .456** .436** .470** .356** .473** .459**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 94 of 117
448** .563** .545** .564** .493** 1 .589** .553** .406** .621** .497** .433** .543** .500** .444** .437**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
497** .521** .509** .540** .652** .589** 1 .455** .475** .586** .528** .473** .538** .489** .463** .484**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 95 of 117
487** .445** .315** .492** .396** .553** .455** 1 .465** .553** .585** .552** .556** .266** .600** .545**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 96 of 117
463** .547** .467** .356** .430** .406** .475** .465** 1 .385** .519** .461** .446** .382** .419** .449**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
493** .495** .484** .602** .549** .621** .586** .553** .385** 1 .576** .460** .557** .443** .530** .411**
Page 97 of 117
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
486** .489** .462** .524** .456** .497** .528** .585** .519** .576** 1 .469** .677** .238** .497** .441**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .001 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 98 of 117
331** .465** .283** .458** .436** .433** .473** .552** .461** .460** .469** 1 .497** .394** .426** .544**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 99 of 117
465** .425** .529** .491** .470** .543** .538** .556** .446** .557** .677** .497** 1 .351** .607** .515**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 100 of 117

240** .472** .365** .342** .356** .500** .489** .266** .382** .443** .238** .394** .351** 1 .353** .326**
.001 .000 .000 .000 .000 .000 .000 .000 .000 .000 .001 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 101 of 117

561** .379** .372** .464** .473** .444** .463** .600** .419** .530** .497** .426** .607** .353** 1 .613**
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
Page 102 of 117

521** .430** .330** .367** .459** .437** .484** .545** .449** .411** .441** .544** .515** .326** .613** 1
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201
**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).
• The correlations presented in the table show the strength and direction of the
linear relationship between pairs of these statements based on the responses
of the participants.
Page 103 of 117

• Sig. level (2-tailed) indicates the measurement of relation between two variable -
1. Impact of behavioural biases ( independent variable )and 2. The investment
decision of investors ( dependent variable).
• Sig. level ( 2 tailed ) – 1, Indicated strongly relation between two different

variables where one is dependent on the other independent variable.
• Sig. level less than 0.05, Indicated that HO is rejected and H1 is failed to
rejected. Where we could say that for HO- there were no significant difference
between two variable.
• Sig. level more than 0.05, indicated that HO is failed to rejected (accepted) and
H1 is rejected. Where we could say that for HO- there were significant
difference between two variables.
• For example, the correlation between "I use the same information as most
people e.g. company profit" and "If many people rely on a certain kind of
information (e.g. return on assets) then it's likely that the information is reliable"
is 0.628, which suggests a positive and moderately strong relationship between
these two statements.
• Similarly, the correlation between "In time of uncertainty in the market, I will
mostly do what other people were doing" and "I'm likely to copy the investing
decision made by people that I know" is 0.567, which suggests a positive and
moderately strong relationship between these two statements as well.
Page 104 of 117

FINDINGS
• Out of 201 respondents 36.3% investors invested for future savings, 13.4%
invested for tax benefits, 29.9% invested for wealth maximization,18.9% saves
for retirement and other was invested with other plans.
• Out of 201 investors 43.3% investors was invested in SIP, 31.3% in mutual fund,
20.4% in spot market and 5% investors was invested in derivative.
• Out of 201 respondents 37.8% investors was female and other 62.2% investors
was male.
• Out of 201 respondents 48.8% investors was from age group 15 – 25 years,
29.9% was from 26 – 35 years, 10.9% from 36 – 45 years, 8% from 46 – 55 and
rest of the investors was from age more than 56 year.
• Out of 201 respondents per month income (RS.) was as follows- 28.9%
investors having less than 10000, 15.4% having 10000 - 20000, 20.9% having
20000 - 30000, 16.4% having 30000 – 40000, 8% having 40000 – 50000, and
rest of the 10.4% investors having more than 50000 per month.
• Out of 201 respondents 40.8% of our respondents was students, 20.4% was
business person, 33.8% was from service sector, 4.4% was home makers, and 0.
5% was retired.
• Out of 201 respondents 42.3% was graduate person, 35.8% was post graduated,
10% was from professional background, 10.9% was from school background
and rest of the investors was from diploma and diploma mech.
• Out of the 201 respondents most common answer were given is neutral, agree.
• The test statistic is H = 167.025463 and the corresponding p-value is p =

0.82085. Since this p-value is more than 0.05, we could failed to reject the null
hypothesis that the investment decision not depend on demographic profile of
investors. We had sufficient evidence to conclude that there would be an
Page 105 of 117

impact of demographic profile on various factors affecting the behavioural
biases of investment decisions.
• These statements seem to be part of a questionnaire or survey about

investment behaviour and beliefs. Respondents were asked to indicate their
level of agreement or disagreement with each statement. The correlations
presented in the table show the strength and direction of the linear relationship
between pairs of these statements based on the responses of the participants.
• Similarly, the correlation between "In time of uncertainty in the market, I will
mostly do what other people were doing" and "I'm likely to copy the investing
decision made by people that I know" is 0.567, which suggests a positive and
moderately strong relationship between these two statements as well.
• On the basis of this research and it were out puts we can say that investors was
invested and somehow behavioural biases were affected them during
investment decision.
Page 106 of 117

CHAPTER 6
CONCLUSION
Page 107 of 117

These statements seem to be part of a questionnaire or survey about investment
behaviour and beliefs. Respondents were asked to indicate their level of agreement or
disagreement with each statement. The correlations presented in the table show the
strength and direction of the linear relationship between pairs of these statements
based on the responses of the participants.
The present study concluded that, successes of investors decision of investing

depend on behavioural biases like- anchoring bias, overconfidence bias,
heard-mentality bias, loss aversion bias, confirmation bias. Other factors like age,
gender, income, education, objective of investment, occupations were somewhere also
affect to the investors to make investment decision influence by biases also. We can
say that investors were somewhere somehow influences by behavioural biases and
also made decision for investing in stock market with biased nature. Hence on the
basis of this study the researcher hopes that the investor made decision of investing
in stock market without biasedness with neutral nature so they can’t have any
problems in returns.
It's important to note that correlation does not imply causation, and other factors may
be influencing the relationship between these statements. Additionally, these
correlations were based on the responses of the participants in this particular study
and may not generalize to other populations or contexts.
Page 108 of 117

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BIBLIOGRAPHY
Investor Intention - Google Forms
https://www.ibef.org/industry/fmcg#:~:text=Fast%2Dmoving%20consumer%20goods
%20 https://www.alliedmarketresearch.com/fmcg-market
(PDF) Effect of Demographics, Personality Traits, and Financial Literacy on Risk

Tolerance and Behavioural Biases in Individual Investors of Pakistan Stock Exchange
(researchgate.net)
https://ezspss.com/one-way-anova-in-spss-including-interpretation
IAEME Publication, IJMET, IJCIET, IJCET, IJECET, IJARET, IJEET, IJM, International
Journal Publisher & Journal Impact Factor, Journal Publication in Chennai, Journal
Publication in India, Journal Subscription in India, Engineering Journals Subscription,
Technology Journals Subscription, Management Journals Subscription, Journal
Publication in Chennai, Thomson Reuters' Research ID : H-3771-2015 Indexed Journals,
Journal publisher in India, High Impact factor journals, UGC Approved Journals, AICTE
Approved Journals, University Approved Journal
https://ezspss.com/one-way-anova-in-spss-including-interpretation
https://www.bing.com/search?q=INVESTIGATING+PERCEPTIONS+OF+BACHELOR+S
TUDENTS+OF++DIFFERENT+MAJORS+ON+THE+ATTRACTIVENESS+OF+BANGKOK+
+UNIVERSITY%27S+MASTER+OF+BUSINESS+INNOVATION%3A+A+CASE+STUDY+OF
++BAISE+UNIVERSIT&form=ANNTH1&refig=210e4734e51b41b296350612f95feebe
Page 112 of 117

ANNEXURE
"A study on impact of behavioral biases on investment

decision"
Dear respondents,
I, SameerNoorani pursuing MBA from Department of Business and Industrial

Management, VNSGU, SURAT. Conducting research on " A study on impact of
behavioral biases on investment decisions ".
Your responses and personal information will remain confidential and this survey
questionnaire is being conducted for education research purpose only. Thank you!
1. What is your main objective for investment?
o Savings
o Tax Benefits
o Wealth Maximization
o Save for Retirement
o Other
2. I do invest in...
o SIP
o Spot Market
o Derivative
o Mutual Funds
Page 113 of 117

3. When making investing decision,
Where; 1.Strongly Disagree, 2.Disagree, 3.Neutral, 4.Agree , 5.Strongly Agree.
I use the same information as most people e.g., company profit
If many people rely on a certain kind of information (e.g., return on assets) then it’s
likely that the information is reliable
In time of uncertainty in the market, I will mostly do what other people are doing
I'm likely to copy the investing decision made by people that I know
I'm generally very good at reading trends in the market
I use my own predictive skills to outperform the market trends
I am generally better than other investors when it comes to reading trends in the
market
I generally don't need the services of a financial planner when investing in financial
products
I prefer low-risk investments over risky investments, even if their returns are low
I readily sell shares that have increased in value
after a prior loss, I become more risk-averse
I buy "hot" stocks and avoid stocks that have performed poorly recently
I use trend analysis to make investment decision
I buy the new equity offering of the company I have already invested in
I appear to believe that past return is indicative of future returns
My trading is affected by recent experience in the market
Page 114 of 117

I use the purchase price of the stock as reference points in trading
I usually rely on experience in the market for my next investment
Before buying a share, I ignore the market information that conflates with mine.
Before buying a share, I appreciate the market information that supports mine
To support all information which is I predication
4. Name?
5. Gender:
o Male
o Female
o Other
6. Age (year):
o 15 - 25
o 26 - 35
o 36 - 45
o 46 - 55
o > 56
7. Monthly Income (RS.):
o 10000 - 20000
o 20000 - 30000
o 30000 - 40000
Page 115 of 117

o 40000 - 50000
o > 50000
8. Occupation:
o Student
o Business
o Service
o Retired
9. Education Qualifications:
o School
o Graduation
o Post Graduation
o Professional
Page 116 of 117

Page 117 of 117

"Behavioral Biases On Investment Decision": Dr. Janki Mistry

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A

PROJECT STUDY REPORT ON

“BEHAVIORAL BIASES ON INVESTMENT DECISION”

NOORANI SAMEER FIROZ

DR. JANKI MISTRY

G.H. BHAKTA MANAGEMENT ACADEMY

VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT

I, the undersigned SAMEER FIROZ NOORANI, student of MBA (Finance) Programme at

SAMEER FIROZ NOORANI

MBA (Finance) Programme

Department of Business and Industrial Management

Veer Narmad South Gujarat University,

Veer Narmad South Gujarat University,

His work is found to be of the standard required of MBA curriculum.

Department of Business and Industrial Management

Professor & Head of department

Secondly, I cannot forget the contribution of my project guide/mentor Dr. Janki

Also, I am thankful to and fortunate enough to get constant encouragement, support

The fourth chapter is research methodology which states Problem statements,

1 Table: 6.1 What is your main objective for investment? 47

2 Table:6.2 I do invest in... 48

3 Table: 6.3 I use the information as most people e.g., 49

4 Table: 6.4 If many people rely on a certain kind of information 50

5 Table: 6.5 In time of uncertainty in the market, I will mostly do 51

6 Table: 6.6 I'm likely to copy the investing decision made by 52

7 Table: 6.7 I'm generally very good at reading trends in the 53

8 Table:6.8 I am generally better than other investors when it 54

9 Table: 6.9 I generally don't need the services of a financial 55

10 Table 6.10 I prefer low-risk investments over risky 56

11 Table: 6.11 I readily sell shares that have increased in value 57

12 Table: 6.12 after a prior loss, I become more risk-averse 58

14 Table: 6.14 I use trend analysis to make investment decision 60

16 Table: 6.16 I appear to believe that past return is indicative of 62

17 Table: 6.17 My trading is affected by recent experience in the 63

18 Table: 6.18 I use the purchase price of the stock as reference 64

19 Table: 6.19 I usually rely on experience in the market for my 65

20 Table: 6.20 Before buying a share, I ignore the market 66

21 Table: 6.21 Before buying a share, I appreciate the market 67

22 Table: 6.22 To support all information which is I predication 68

23 Table: 6.23 Gender 1. Male, 2 Female, 3 other 69

24 Table: 6.24 age 70

25 Table: 6.25 monthly income 71

26 Table: 6.26 occupation 72

27 Table: 6.27 education 73

28 Table: 6.28 Kruskal-Wallis test 75

29 Table: 6.29 correlation test 85

2 Figure: 1.3.2 Types of Biases 5

3 Figure: 6.1 What is your main objective for investment? 47

4 Figure: 6.2 I do invest in.. 48

5 Figure: 6.23 Gender 1. Male, 2 Female, 3 other 69

6 Figure: 6.24 age 70

7 Figure: 6.25 monthly income 71

8 Figure: 6.26 occupation 72

9 Figure: 6.27 education 74

A commitment of funds made in the expectation of some positive rate of return. An

1. time the funds are committed,

2. the expected rate of inflation and

3. the uncertainty of future payments i.e., the risk Undertaken

There are different characteristics of investment like-

5. Hedge against inflation

There is major 3 objective of investment:

1. Maximize the return