An Investigation of Reviewed Literature on the Influence of Behavioural Finance on Financial Decision Making

Abstract

The evolving field of behavioural Finance examines the psychological and sociological factors that impact the decision-making process of individuals, groups, and business organizations. Individuals’ savings and investments are crucial for personal financial
well-being and economic growth. Money invested in productive assets or capital goods will fetch a very lucrative return compared to financial institutions’ savings. Investment in productive areas enhances the national product or per capita income and increases the standards of living of the investor. The financial services sector has turned out to be tremendously diversified, offering investors a wide-ranging variety of investment opportunities. Through appropriate investment tactics and financial planning, investors can upsurge personal wealth,which will boost economic growth. Economic growth is the utmost imperative factor affecting the quality of life individuals lead in a country. In this paper, an attempt has been made to diagnostically review the findings of various existing works of literature regarding the influence of behavioural Finance on financial decision-making.