Investors’ Confidence and Risk Attitude in Indian Stock Market

Rationality is one of the basic assumptions in all standard financial theories, but the behavioural finance experts have shown with the help of various experiments and other studies that investment decisions are influenced by cognitive psychology and emotional factors. Individuals’ investment decisions are affected by not only intellectual aspects but emotions, preference and desires also. There are a number of demographical factors such as gender, age, income, education, wealth and marital status of individuals which influence the investment decision-making apart from cognitive and emotional biases.