A STUDY OF BEHAVIOURAL FINANCE ON INVESTMENT DECISIONS AMONG INDIVIDUAL INVESTORS: EFFECT OF DEMOGRAPHY, INVESTORS PERSONALITIES AND INVESTMENT CHOICES IN BENGALURU

India, during early 1990 has opened up itself to the World. The liberalization, privatization and globalization have brought impressive GDP growth. The major contributor to this was the investors. Therefore the Government thought of attracting more investors. The Indian Capital markets started receiving more attention from the sound investors from all over the globe, especially after 2003. Here there is a necessity to study How, Why, When, Where and what amount is invested by the investors.

Behavioral finance is the emerging trend and an additional tool in understanding the financial decision making process of the investors. It is the psychology and emotions of the investors involved in economic decision making. It states that individuals are not rational and also not stupid. They are normal persons and run by various biases. The evaluation of risk and return on investment and investors 'psychology and belief and the selection of investment and decision making may be effected by more numbers of factors such as demography and personality.

In this paper we study the effect ofdemographical variables, investor's personalities on instrument of investment among individual investors in Bengaluru city. Frequency analysis and various statistical tools were used to describe the variables. Only that respondent who has invested in at least any one of the investment instrument is selected for the study.