Do Investors’ Emotions Determine their Investment Personality ?

Behavioural finance is a new discipline in finance which studies the investor's biases and their investment decisions. Emotion is one of the psychological factors which create biases among individual's investment decisions. This paper tries to find out whether individual's emotions determine their investment personality or not. For that purpose, multi stage sampling technique is adopted to collect the data from 742 retail investors who are accessing Indian stock market. The collected data are quantitatively analyzed by using AMOS, STATA, SPSS and SEM model. Findings of this study suggested that investor's emotion based intuitiveness affects their investment personality.