Impact Of Biases (Anchoring Bias, Representative Bias And Framing Bias) On The Decision Making Of Investors Of Quetta.

Behavioral finance is a comparatively new dimension in the field of finance. This is concerned with the behavioral patterns and the investments intents of investors that to what extent the investor is partial to the rational theory of finance. Behavioral finance directs that how the investors should behave while engaging into investment process and how could the biased behavior affect the investment markets (Kim, 2008) and this help them to behave rationally (Bhatla, 2009). In fact, the conventionality between investor’s emotion and decision is the base of behavioral finance. This research is carried out on the investors of Quetta, particularly to assess their behavioral tendency to that is affected or not while making an investment decision. The investors are mainly from the field of real estate, goldsmiths and technological logistics. This is a quantitative research and data collection has been done by the tool of questionnaires. The data analysis shows that the investors are highly influenced by behavior biases (anchoring, representative and framing bias). They resultantly make investment errors due to insufficient market information, misperception of events and the perplexity of judgment of event that is likely to take place in investment market. These unplanned and unanticipated investment decisions, which are sometimes considered well judged by investors, lead to least or no profitability margin in investment market. Consequently, the ultimate objective of investment is corroded by the psychological intentions of investor.