Impact of Emotional Biases on Investment Decision Making Among Retail Investors: An Experiential Analysis in Ahmedabad Region

The impact of emotional biases on retail investors' investment decision-making in the Ahmedabad area is examined in this study. The study, which has its roots in behavioral finance, focuses on four emotional biases in particular: sentiment-driven trading, fear of loss, regret aversion, and overreaction to market news. A structured questionnaire was used to gather data from 300 respondents as part of a descriptive and correlational study design. Regression analysis showed that, despite the theoretical importance of emotional factors in financial behavior, these biases only explained 2.5% of the variance in investment decisions, making them weak and statistically insignificant. The results show that emotional biases alone have little predictive power and that informational, psychological, and context-specific factors might be more important in directing retail investors. In order to improve rational financial decision-making, the study's conclusion highlights the necessity of a more comprehensive, integrated approach in future research and policy-making.