Abstract

Mutual fund investment in India has gained significant popularity over the years as an avenue for individuals to participate in the capital markets. Understanding these psychological factors can help investors recognize and mitigate potential biases in their decision-making processes. Being aware of one’s personality, risk behavior, seeking diverse perspectives, and maintaining a long-term investment horizon can contribute to more rational and informed investment decisions. Additionally, seeking professional advice and engaging in continuous learning and self-reflection can further enhance investment decision-making abilities. Individual differences within each personality trait can significantly influence investment decisions. Additionally, other factors such as financial literacy, investment knowledge, and personal circumstances also play a role in shaping investment behavior and risk tolerance. This paper attempts to explore the nuanced relationships between personality traits, risk, and mutual fund investment decisions.

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