Investigation of Home Bias and Disposition Effect in the Investment Behavior-Delhi-NCR

In the stock market actions of the investors were judged on the basis of presumption of rationality on the part of investors but on the contrary behavioral finance focused on the behavior of retail investors while investing. There are many biases but some biases are less focused upon, an attempt has been made in the present study to cover those biases namely Home bias, Disposition bias. The present study attempts to study the implications of these two biases on the investment decisions, study was carried out in the area of Delhi-NCR considered suitable as people in this area are very much aware of the opportunities available in stock market. Sample size involved in the study was of 400 respondents. Data was collected with the help of questionnaires and the data analysis took place with the help of SPSS and Multiple Regression Method. Findings of the study suggested that both the biases under consideration are significantly impacting investment decisions of the individuals, Disposition bias was impacting the decisions in a more profound manner than Home bias as according to a recent data most of the new entrants in the stock market regardless of the segment they are trading in, end up in losses and disposition bias exhibit itself strongly in investment behavior of people losing money in stock market.