GE-INTERNATIONAL JOURNAL OF MANAGEMENT RESEARCH REVIEW OF THE INDIVIDUAL EQUITY INVESTOR"S BEHAVIOR IN THE INDIAN CONTEXT

Renu, P Christie
unpublished
The individual investor"s behavior is affected by several factors, both external and internal with respect to the investor. Most studies have taken either the external factors or the internal factors, to study the behavior of the investors. The findings of several studies done in each of these factors are brought together in this review paper. This paper brings together all the factors affecting investor behavior, including internal factors like the behavioral biases, namely,
more » ... Representativeness, Anchoring, Gambler"s fallacy, and Availability bias. The external factors include, Neutral information, Accounting information, Self-image/Firm-image coincidence, Classic wealth maximization, Social relevance, Advocate recommendation and Personal financial needs. In addition to these factors, the paper also covers the demographics and the investment strategy like fundamental/technical analysis which also determine the individual investor"s behavior in terms of stock selection decision. The paper concludes that an extensive empirical study encompassing all these factors in the Indian context is necessary to understand the individual investor.
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