Behavioral predispositions of Individual Investors: A gender based comparative analysis of investment behaviour at Indian Stock Market

Abstract

This study explores the behavioural biases exhibited by the individual investors in the stock market of India highlighting most common biases among investors irrespective of their gender, experience, education, or income. The primary survey involved individual investors spread across 30 major cities of India during the second half of 2024. With the direct support of top ranked broking houses, 3122 individuals randomly selected could be reached. The survey used a structured questionnaire to collect opinion under 5-point Likert scale. 1036 investors (552 men and 484 women) participated in the study. Statistical tools like mean, one sample t-test, factor analysis and multiple regression analysis were used to draw conclusion on the subject. The result showed that gender truly impacts the decision-making of the respondents. The investment decisions taken by women investors were impacted more by anchoring, regret aversion and status quo biases in comparison to the male investors. Similarly, the male investors showed high degree of availability, herd and overconfidence behaviour biases. As regards the level of satisfaction in terms of attaining desired return, both male and female investors did not appear to have achieved it. The prevalence of these biases in their decisions has more likely resulted in reducing the earning potential from their stock investment.