Vol. 2, Issue 7, Part B (2016)

Abstract
Behavioral finance encompasses research that drops the traditional assumptions of expected utility maximization with rational investors in efficient markets. Behavioral finance argues that some financial phenomena can plausibly be understood using models in which some agents are not fully rational. The research identifies the extent of behavioral factors affecting the investment decision. The individual investor’s related factors are classified into 3 parts for the study and important factors on which an individual investor would take their investment decision will be identified under this research.