Impact Of Personality Traits, Behavioural Bias And Financial Literacy On Investment Performance

Abstract

Investors’ behaviour is subtle and qualitative concept, and it is very risky to judge it
independently. The behaviour of an investor is usually assessed in the light of the various
factors that stimulate or stagnate investment decisions. The presence of such factors may lead
the investor to a rational or irrational judgment. Behavioural bias personality traits and financial
literacy are considered while evaluating or assessing the behaviour of investors from different
avenues. The main objective of the study is to find out the role and impact of personality traits,
behavioural bias and financial literacy on investment performance. This study is summarized as
logit (performance) = 23.425 – 0.192 * B -0.508 * P + 0.073 * F. and Investment Performance
score = 36.99 – 0.467 × Personality Traits score – 0.373 × Behavioural bias + 0.125 × Financial
Literacy.