Individual investor behaviour is motivated by a variety of psychological heuristics and biases. Using survey data of more than 350 individual investors, we document four important results in the context of Indian individual investor behaviour. First, investors make investment decisions based on...

Individuals often invest in securities based on approximate rule of thumb, not strictly in tune with market conditions. Their emotions drive their trading behaviour, which in turn drives asset (stock) prices. Investors fall prey to their own mistakes and sometimes others' mistakes, referred to...