BEHAVIOURAL FINANCE

Presented by: Mahak and Maneet

 Meaning
 Behavioural Finance is the study of the influence of
psychology on the behaviour of investors and
financial analysts.
 It focuses on the fact that investor is not always
rational.
 Example:
 Concepts of Behavioural Finance

 Mental Accounting
 Herd Behaviour
 Anchoring
 High Self Rating
 Emotional Gap
 Nature

 Behavioural Finance is not just a part of finance

 Self-Deception
 Heuristic Simplification
 Emotion
 Social Influence
 Scope

 Investors
 Corporations
 Market
 Regulators
 Educators
Traditional Finance Vs Behaviour
Finance
Traditional Finance Vs Behavior
Finance