Impact of Behavioural Baises on the Investment Decisions with the Mediating Role of Gen X, Milennials and Gen Z

Abstract

This study explores the influence of behavioral biases on investment decisions emphasizing the mediating role of generational cohorts: Gen X, Millennials, and Gen Z. The ultimate objective of the research is to explore how these biases change across different generations and how the distinct traits and experiences of each generation influence their investing choices. The study is conducted with a broad group of investors including Gen Z, Millennials, and Gen X to examine their investing behaviors and bias susceptibility. The primary data is collected using drop and pick self-administered questionnaires. A survey of 200 participants divided equally among the three cohorts reveals distinct generational patterns in susceptibility to these biases. These generational differences underscore the need for tailored financial education and advisory services. By addressing the unique biases of each generation, financial advisors can better support clients in making informed and rational investment decisions. This study offers valuable insights for financial professionals, educators, and policymakers, emphasizing the importance of developing generation-specific strategies to mitigate the adverse effects of behavioral biases on investment outcomes ultimately fostering more rational and effective investment behaviors across different age groups.