Investor Perception and the Role of Behavioral Finance in Investment Decisions.

Investment decision is a complex activity. It can be defined as the process of choosing a particular avenue from a number of available avenues. There are two types of investments: security and non-security. Behavioral finance theories play an important role in investment decisions, which define that investors' decisions are irrational and are based on various psychological factors. Every investor has different objectives for investment. In this study, an attempt has been made to study the various investment objectives of the investors. Chi-square test has been applied to find out the impact of investment experience on the type of investment, and it is found that there is no impact of experience on the type of investment. To find the difference in the behavior of young and old investors who invested only in security avenues, t-test is applied and no significant difference is observed. An analysis of variance is applied to test the impact of annual income and the percentage of amount invested on investment objectives for investing in security and nonsecurity avenues, and it is found that there is significant impact of annual income on investing in security avenues. [ABSTRACT FROM AUTHOR]