Analysing Financial Literacy and Behavioural Biases in Investment Decisions: A Study of Retail Investors in Dehradun, India

Abstract

This study shows the awareness of financial literacy and the effect of behavioural biases on investment decision among retail investors of Dehradun City in India. The research study investigates the effects of demographic variables (gender, age, education, and income) on investor behaviour with the help of factor analysis using primary survey data. The major biases covered in the study are of three types- Behavioural, Cognitive, and Emotional and they impact the financial decision making. This paper investigates to the regional behavioural financing literature by analysing tendencies of investors in the sample and serves as a basis for the design of further financial education programs and policies.