Shanlax International Journal of Management
  • Year: 2020
  • Volume: 8
  • Issue: 1

Investment Strategies and Trading Approaches in Behavioural Finance

Research Scholar, Department of Management, Dravidian University, Kuppam, Andhra Pradesh, India, Email Id: babubb.91@gmail.com

1https://orcid.org/0000-0001-6725-7714

Abstract

The behavioral finance literature documents several long-term investment strategies that persistently generate superior risk-adjusted returns. This study focuses on several investment strategies, trading approaches, and problems with the traditional financial theory's explaining their logic and the historical returns generated by these strategies. In the case of the investor's sentiment indicators and the anomaly, an exchange-traded fund (ETF) has been created to enable investors to simply and efficiently invest in the strategy.

Keywords

Behavioural Finance, Anomaly, Investors, Investment, Traditional finance, Sentiments and ETF