Investor’s Behavior Analysis: An Empirical Study with special reference to Belagavi

The study reveals the psychological and emotional variables influencing investment decisions. Despite the rationality assumed by traditional finance, irrational tendencies such as herd mentality, loss aversion, and overconfidence are frequently seen in real-world behavior, which can result in market oddities like bubbles or crashes. The analysis of investor behavior reveals that younger individuals, particularly students and those with moderate income levels are increasingly participating in the stock market. Most investors are cautious, preferring growth and blue-chip stocks while allocating a smaller portion of their savings. Their primary goal is long-term wealth creation, supported by a moderate risk tolerance and rational decision-making practices. However, the tendency to panic sell during market downturns highlights emotional challenges in volatile situations.