Application of Behavioural Finance in Investment Decisions: An Overview

Abstract

Behavioural Finance is the part of finance that seeks to understand and explain the systematic financial implication of psychological decision process. The present article begins with the introduction to behavioural finance and tries to highlight the applicability of behavioural finance in the modern society with relation to the investment decisions made by the investors. The article further takes into account studies from past literatures so as to understand the use and importance of behavioral finance as a study and its application to the society at large.

Keywords: Behavioural Finance, Investments Psychology, Environment