Abstract

This study investigates the influences of cognitive biases on the investment behaviour of the youth of the city of Coimbatore. The main purpose of this study will be to explore the idea that individuals who engage in stock market activities and have different types of biases such as Overconfidence, Anchoring, Loss Aversion, Confirmation and Herding perceive to have the power to affect their investment choices. The study involved 120 investors aged 18-29. The study uncovered various behavioural biases that significantly affected the investment decision-making process among young investors. Anchoring Bias was proven the most significantly influencing bias of investment decisions, followed by Overconfidence Bias and Loss Aversion Bias. The information provided suggests that the effect of Confirmation Bias and Herding Bias on decision-making is insignificant.

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