Abstract
The study seeks to understand the most influential personality dimensions shaping investment decision-making while elucidating the intricate mechanisms through which cognitive biases interact with these traits, ultimately shaping investment strategies and outcomes within financial contexts. A quantitative research approach was employed, surveying 100 female investors in urban areas. Psychological scales measured the Big Five personality traits, while selfreported data captured investment decisions, strategies, and preferences. Cognitive biases were assessed through scenario-based evaluations of susceptibility to common financial biases. Statistical tools such as regression analysis and moderation tests were applied to examine the data. The research identified correlation between women’s investment behavior and their personality traits. Additionally, cognitive biases played a crucial moderating role in these associations, with loss aversion and overconfidence exerting a notable influence. This research contributes to the understanding of psychological factors influencing investment behavior, particularly among women, and highlights the importance of considering personality traits and cognitive biases in financial planning. This will help them to develop a personalized and relevant portfolio for themselves by understanding and mitigating their biases while taking investment decisions which will lead them to take wiser investment decisions, thereby reducing the risk and maximizing opportunities of returns. Comprehension of these factors is crucial for enhancing financial advisory services, training programmes and promoting effective investment strategies tailored to the distinct predispositions and inclinations of female investors. This study is first and novel one to examine the moderating aspect of cognitive biases among women and their profound influence on financial investment behaviour covering the impact of big five personality traits on investment behaviour.
Keywords: Big Five Personality Traits, Cognitive Biases, Financial Decision-Making, Moderating Role, Women’s Investment Behavior.