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Research Paper | Management | Volume 15 Issue 7, July 2026 | Pages: 399 - 405 | India
An Empirical Study of Financial Knowledge and Behavioural Biases Impacting Investment Behaviour of Qualified Professionals Working in Mumbai
Abstract: The present study explores the effects of financial knowledge and behavioural biases on the investment behaviour of qualified professionals. The study is quantitative, descriptive and analytical in nature. Primary data was collected through a structured questionnaire using the Likert scale. The population of the study is qualified professionals such as doctors, engineers, lawyers, architects and management graduates living and working in Mumbai and the sample size of 350 respondents is selected using convenience sampling. Descriptive statistics, one-sample t-test and regression analysis were used to test the hypotheses. The findings showed that financial knowledge has a significant and positive impact on investment behaviour (t = 61.135, p < 0.05). This means that people with high financial literacy are inclined to take better investment decisions. However, behavioural biases such as overconfidence, anchoring, herd behaviour, confirmation bias and loss aversion were not observed to have a significant individual impact on investment behaviour. In contrast, the joint effect of financial knowledge and behavioural biases was statistically significant suggesting that these factors jointly affect investment decisions. The study concludes that improvement in financial knowledge and disciplined investment practices can improve investment behaviour and behavioural biases may not be good predictors alone.
Keywords: Financial Knowledge, Behavioural Biases, Investment Behaviour, Overconfidence, Anchoring, Herd Behaviour, Confirmation bias and Loss Aversion
How to Cite?: Swati Vaibhav Pradhan, Dr. Shankar Choudhary, "An Empirical Study of Financial Knowledge and Behavioural Biases Impacting Investment Behaviour of Qualified Professionals Working in Mumbai", Volume 15 Issue 7, July 2026, International Journal of Science and Research (IJSR), Pages: 399-405, https://www.ijsr.net/getabstract.php?paperid=SR26705194416, DOI: https://dx.doi.org/10.21275/SR26705194416