A Study on Impact of Emotional Intelligence of Retail Investors on Investment Decisions

Abstract

A retail investor is a shareholder who buys stocks for his or her own personal account rather than for the benefit of the firm. Investment selections have become more important as a nation's job prospects and economic development have increased. Working people's capacity and desire to save and invest their money for returns has increased as a result of increased awareness of investment opportunities. Due to the liberalization of the Indian financial industry, there has been an amazing rise in the investment sector in terms of both volume and number of investors in India during the last decade. There is a flood of varied investment products with a plethora of possibilities to entice people to invest. In India, the number of regional stock exchanges has grown. Typically, investment choices are made using basic or technical approaches. However, in many circumstances, investors make investing decisions based on their emotions. This study analyses the impact of several elements such as biased representation, mental accounting, and risk aversion on the execution of an investment choice. Retail investment has experienced a meteoric rise in recent decades. The financial sector of every country is critical to the success and growth of other sectors of the economy, and this is especially true in developing economies. An effort was made to measure Emotion Regulation, Emotion Use or Motivation, Social Aptitudes, Loss Aversion, Status Quo, Endowment, Regret Aversion, Self-Care, and Investment Decisions. The regression findings revealed that Retail investors' Emotional Intelligence had a beneficial influence on investing decisions.