International Research Journal of Education and Technology

Behavioural finance biases can influence our judgment about how we spend our money and invest. The most common pitfalls include mental accounting errors, loss aversion, overconfidence, anchoring, and herd behaviour.To evaluate the impact of demographical factor on loss aversion and anchoring effect. To evaluate the impact of demographic factor on investment decision. The significant value is greater than 0.05, therefore there is no significant difference between male and female with anchoring effect on investment decision by individual investors. This study shows that the significant value is less than 0.05, it accepts the alternative hypothesis. So, there is a significant relationship between year of experience and influence of loss aversion bias on investment decision. The relationship between education and investment decision of investment decision by individual investors, p value for “buy a share as per my interest or as per my broker suggestion” and, “investment decisions of other investors while I decide to buy or sell stocks” and “others investing decision has an impact on my decision making” is less than 0.05. Therefore, we accept the alternative hypothesis. The P value of remaining perception of investment decision by individual investors was greater than 0.05 so null hypothesis accepted.

Key words: behaviours basis, anchoring effect, loss aversion, investment decision, decision making.