A Conceptual Study on Behavioural Finance

Behavioral finance is the amalgamation of finance and psychology. It is an emerging trend in recent times which supports modern theory of finance. As per the classical theory of finance the behavior of investor is rational but according to modern theory the behavior of investor is not always rational or logical in nature. It focuses on how investor analyses or interprets the information while making an investment decision. This study is done to analyze key behavioral factors which affects the decision making and helps in identifying investment patterns of the investors.