TO EXAMINE THE EFFECTS OF ANXIETY AND ANGER ON THE INVESTMENT DECISION MAKING

Abstract

Purpose:- The purpose of this study is to identify the effects of emotions (anger and anxiety) on the decision related to the investment. Either it is profitable to take investment decision during these emotions or not. Methodology:- As data of research organized from Primary source like, Questionnaire. Research design is cross-sectional based on different age groups. Data is collect form the investor of Karachi Pakistan. The total respondents of this survey are 375. Findings:- This research paper explores the level to which people decide on the options related to financial decisions based on their dispositional attributes to participate in a particular emotions, for example, anxiety and anger. It anticipates that the trait of anger is related to the decisions of investment, while the trait of anxiety encourages people at low level to make investment decisions. The result of this survey was collected through the Questionnaire. The characteristic of anger anticipates a portfolio of medium risk, while the characteristic of anxiety is related to the portfolio of low risk. This data is stable with cognitive models of-the emotions and expanding the awareness of the connection between emotions characteristics and the real life investment decision-making. Emotions such as anger and anxiety, have positive impact on investment decision making. But the relation is not very strong. Anger has low level of relation with investment decision making whereas Anxiety is at moderate level.