A Generational Study of Behavioural Biases and Their Impact on Portfolio Management Among Active Investors in the Indian Stock Market" in Bengaluru

Abstract

Behavioural finance has taken over the traditional fiancé where it majorly emphasises on the effect of psychology on investment decision. The Behavioural finance has undoubted effected the Indian stock market and the retail investors of the same. The study aims to identify the prominent generation groups who are actively investing in Indian Stock market, to analyse which behavioural bias is most prevalent amongst active investor and finally to evaluate how the duration of investment affects their portfolio management. A well-structured questionnaire was circulated amongst the investors in Indian stock exchange. The sample size was restricted to 100. During the study it was found that Millennials formed the major active investors in Indian stock exchange and they were affected majorly by disposition biases. The respondents with higher duration of investing were found to rebalance their portfolio at least annually. The statistical tool used were Chi-square, one sample Z test and Spearman’s correlation