Abstract

Investor sentiments play an important role in investors’ decisions about the investment activities in the stock market. Sometimes, investors ignore the market analysis and base their decisions on their sentiments only. Therefore, these sentiments may affect the returns of the investors. The present study evaluated the impact on these investors’ sentiments on investment decision. The researchers targeted four most prominent sentiments of the investors. These sentiments are overconfidence, glamour stock, religious beliefs and herd like behaviour. The researcher collected data from the investors trading at London Stock Exchange. The data in this study was collected through a questionnaire. The collected data was analysed through independent sample t-test, ANOVA and regression. The study finds that female and young investors are more obsessed with their sentiments. However, male and older investors quite control their sentiments during the investment. The study also finds that overconfident investors have to face negative returns from the market. Glamour stocks and religious beliefs of the investors are irrelevant in determining the returns of an investor. Herd like behaviour is quite risky, but the study has found that this behaviour is helpful in generating positive returns in the market. The study has been conducted in a developed economy. The future researchers may work on developing economies as well and comparison can also be performed.

Table of Contents

Abstract i

Table of Contents. ii

List of Tables. iv

List of Figures. v

1.       Introduction. 1

1.1.       Prologue. 1

1.2.       Background of the Study. 1

1.3.       Research Problem.. 4

1.4.       Aim of Study. 5

1.5.       Research Questions. 5

1.6.       Research Objectives. 5

1.7.       Significance of Study. 5

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