Significance of Investing in Stock Market with a reference of Behavioral Finance

Behavioral finance is a branch of finance that tries to understand the psychological aspects of investor in the process of decision making while selling, buying or investing in the market. Investment in the market is considered as good option for gaining profit. But, some kind of market risks is also associated in market investment. Behavioral finance studies the factors that influence the decision of an individual while investing. It covers all the decisions of investors whether good or bad. This branch of finance also investigates the inefficiency of market. In daily life, people take several decisions leading to good or bad consequences. An individual may think to buy stock or a fund manager may think to sell a stock so as to make a balance the portfolio. The current article describes about various issues related to behavioral finance.