1Centre for Management Studies, Jamia Millia Islamia, New Delhi.
2Jaipuria Institute of Management, Ghaziabad, UP.
The purpose of this paper is to investigate the influence of Investor's psychology particularly of South Asian region specially Indian perspectives in making their investment portfolios. The paper uses questionnaire to examine the behaviour and practice of stock market investments. The respondents consist of the investors of Delhi including Brokers and their regular clients. The major findings of the paper are that psychology of the investors play a vital role in investment decisions. They give maximum weight age to the security of the principle amount. For buying a stock they will rely on their own analysis, also they have admitted their own analysis to be the major reason of bearing a loss. Stocks they consider for sale first, will be those which have already yielded a profit. The results highlight the psychological implications and techniques used by various investors while making their stock investment decisions as well as analyzing the consequences of their performance.
Behavioral Finance, Herding, Limits to Arbitrage, Investment JEL Classification: G11