Behavioural finance believes that at times, investors may distort from rationality which affects their decision making. This paper attempts to examine the major behavioural biases so that it can provide us with information related to human psychology, explaining the errors committed by investors while making market-related predictions. It explores the impact of behavioural finance on investment decision-making and compiles related concepts from financial economics, psychology, and sociology concerning building up an extra detailed model of human behaviour in the financial markets. The study also highlights major biases and their implications for the investment decision-making of retail investors.
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Singh et al. (2022) studied this question.
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