The Impact of Behavioural Biases on Investment in Capital Market:A Study of Individual Investors in Eastern India

In the past two decades, behavioural finance, a new paradigm of finance gained momentum on the foundation of conventional f inance. An ongoing debate between behavioural theorists and conventional theorists provides scope for investigation into the changing landscape of investment behaviour. Behavioural finance deals with the impact of psychological factors on investment decisions. It deviates from the assumption of rationality and can explain how an investor takes investment decisions. In the changing investment scenario and extreme volatility in the capital market, investors do not conform to rational thinking and reflect numerous biases. Therefore, studying how psychology plays an important role in investment decisions becomes imperative.