Objectives Of Behavioral Finance

Our future is uncertain. To have a safe and secure future, we must plan it today only. For financially secure future, savings and investments are necessary. We the households tend to save money. Then we invest some of the savings amount in different assets and try to make a profitable portfolio to avail benefits in future. This concept of savings and investments sounds effortless but it’s not a child’s play. It is interesting but at the same time complex too. It’s not everyone’s cup of tea. When we face investment decisions, our mind starts questioning, what is my objective for investment, where to invest, how much invest, when to invest, how long to invest, etc. For making a profitable investment, the investor must have proper knowledge about

Financial advisors can help in construct their portfolio accordingly.

1.13. Research Question

A research question is a fundamental core of a research project, study or review of literature. It starts with research problem. The research questions formulated were-

1.13.1. Are households aware about the concept of Behavioral Finance and whether households portray different behaviour on different situations related to different behavioral biases?

1.13.2. What is household’s main objective of investment and is household’s objectives is different with their demographics and what pattern households follow while investing?

1.13.3. Whether demographics of households exert a significant impact on different behavioral biases?

1.13.4. Do households portray different behaviour while investing in single asset or while making a portfolio?

1.13.5. What is the difference between risk tolerance and risk capacity of households?

1.14. Research Framework Figure 1.8. Research

Objectives of Research

A research objective can be specified broadly or narrowly. The major mistake, the researcher did is to specify too many objectives for a single project which turns data collection task unwieldy. It’s better to have a few, clearly stated objectives.

In this research, we have designed these objectives-

1. To investigate whether behavioral biases of investors are affected by age, gender, qualification & professional to the same degree.

2. To study the risk tolerance capacity and risk capacity of individual investors while constructing portfolio.

3. To study the investment pattern of investors while constructing portfolio.

4. To assess the extent to which behaviour influences the financial preference of individual investors.

5. To analyze whether there is any difference in behaviour of investor while investing in individual assets or making a portfolio.

These objectives will help investors to gain insight knowledge about investment pattern, different behavioral biases, their risk tolerance and risk capacity. With the help of various statistical tools, we will try to achieve the