ZENITH International Journal of Multidisciplinary Research _________ISSN 2231-5780 Vol.8 (11), November (2018), pp. 320-330 Online available at zenithresearch.org.in OVERCONFIDENCE & EMOTIONAL BIAS IN INVESTMENT DECISION PERFORMANCE ASHEETU BHATIA SARIN RESEARCH SCHOLAR, LINGAYA’S VIDYAPEETH. Email-asheetub@gmail.com DR.JIVAN KUMAR CHOWDHURY PROFESSOR, SCHOOL OF MANAGEMENT SCIENCES, LINGAYA’S VIDYAPEETH. ABSTRACT The classical theories of economics show that the individual is rational and make decisions by evaluating all information, which is available. In modern era, many economic phenomena cannot be interpreted by these theories. It is difficult for the investors to make their investment decision because they have to consider various factors before making decision. In the past, the investors had limited information to make a decision and make a decision on some information, which were easily available, but with advancements in technology, investors have to face large information heaps to make a decision. For the convenience of analysis and conclusions, scholars call such phenomena “abnormal phenomena” or “contradictory phenomena”. Behavioral finance aims at the phenomena which cannot be explained by modern corporate finance, utilizes analytical methods of psychology and adds human factor. It has been verified by experiments. In realistic society, although most investors/ managers have received theoretical training and rich experience in participating in business and management and stock market, there are still many irrational decision-making reasons. People often cannot make rational judgment due to emotional factor. Even if investors are absolutely rational, they cannot own all reliable information. Therefore, it is very difficult for people to effective conclude things they observe. Such real phenomenon completely deviates from the hypothesis of rational economic persons. This is also the primary cause why decision-making behaviors of investors are often irrational and thus result in decision biases. There are many psychological factors influencing decision biases, including overconfidence, herd behavior, emotional bias and preference for current situation. This study only discusses overconfidence and emotional factors in investment decision- performance process. KEYWORDS: Behavioral Factors, Overconfidence Bias, Emotional Bias, Investment Decision Performance. References Books 1. Chandra Prasanna (2016), Behavioral Finance, McGraw Hill Education 2. Mishra Bishnupriya, Debasish Sathya Swaroop (2008), Indian Stock Market, Excel Books