A Study on Behavioral Finance to Understand the Psychological Behavior of Individuals in Financial and Non-financial Investment and Decision Making

Everyone earns cash intending to fulfil life goals. Cash is employed for mundane also as exotic
functions. It will be saved and invested with to finance numerous goals like education, marriage,
retirement and then on. The wants will be each immediate and within the distant future. Cash will be
attained by operating for pay, by taking risks for profit associated degree by investment and
managing it to relinquish the financial gain. Behavioral finance could be a comparatively new
paradigm of finance, that seeks to supplement the quality theories of finance by introducing
behavioral aspects to the decision making process. Early proponents of behavioral finance are
thought about by some to be visionaries. This research paper exhibits with key analysis tools like
factor analysis, binomial distribution, chi-square analysis, correlation analysis and regression analysis
with Three Hundred as the sample size and the research was conducted within the Chennai city in
India. This paper is an attempt to comprehend and distinguish the importance of psychological
behaviour of individuals towards investment and decision making.