Abstract

Behavioural finance is relatively new but quickly growing field that seeks to provide explanation for people’s economic decisions by combining behavioural and cognitive psychology theory with conventional economics and finance. An attempt is made to identify the biases which the investors have and study the impact on their investment decision making. Further with the help of mean analysis and coefficient of skewness it can be observed whether an investor is suffering from a particular bias or not. While with the help of one-way ANOVA the researcher has tried to check the similarity in the impact educational qualification towards different biases across the investors. In total data was collected from 150 respondents who are investors and are located in and around Junagadh city.

Key words: Availability biases, Representative biases, Over confidence bias, skewness.