Unfolding heuristic behaviour biases for investors’ classification-A cluster analysis approach

Abstract

The study under consideration has examined three heuristics of investors’ behaviour that can be
expended for making investors’ clusters. The current research is based on primary data for which data was
collected from a large number of investors. The study has used a standardised scale and the results are
obtained using exploratory factor analysis and cluster analysis. The portfolio managers, portfolio advisors,
banks and financial institutions involved in providing investment alternatives, portfolio services or
investment advisory services are always looking for investors’ classification for devising their strategies.
The findings of study are useful for all these stakeholders along with academicians and researchers