Determinants of Investor's Behaviour – An Analytical Review

Abstract

Behavioural Finance combines psychology with financial theory to comprehend the associations between markets, emotions, personality and reason. Investors have dissimilar outlook when they choose about investing in a specific avenue. Through appropriate investment strategies and financial management, investors can upsurge personal wealth which will enhance the economic growth. Three variables that measure the growth of an economy are Income, Saving and Investment. This study forms a concrete theoretical framework for the researchers on investor’s behaviour in different countries. In this paper numerous literatures prevailing worldwide has been examined using interpretative approach viz., objectives, sample, research methodology and results of the study to diagnose the investor’s behaviour. The paper exhibits that there are miscellaneous variables that administer an investor’s decision to save and invest. Further, an investor’s behaviour model has been developed.

Keywords: Behavioural Finance, Financial Planning, Investor’s behaviour model, Investment Strategies

JEL Classification: D19, D31, E21, G11