Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

@article{177386,
        author = {Ms Sweta singh and Dr Vinitendra Pratap Singh},
        title = {Analysing how Overconfidence Biases Impact Portfolio Management and Risk Taking: A special reference to stock market investors in Lucknow City},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {11},
        number = {12},
        pages = {2039-2042},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=177386},
        abstract = {This research examines the impact of overconfidence bias on investing decision-making processes and outcomes. Overconfidence, a cognitive bias in which people overestimate their knowledge, abilities, or chances of success, can have a significant impact on the performance of financial markets and individual investments. Through a comprehensive literature review and empirical analysis, this study investigates how overconfidence manifests in various areas of investment behavior, such as excessive trading, risk perception, and portfolio diversification. The study used a mixed-methods approach, integrating quantitative analysis of trade data from a sample of 500 retail investors over a three-year period with qualitative insights from semi-structured interviews with 50 professional fund managers. Results show that overconfident investors trade more frequently, have less diversified portfolios, and underestimate investment risks, all of which lead to less-than-optimal returns in comparison to their less confident peers. The study concludes by discussing the implications of these findings for legislators, financial advisors, and individual investors in order to offer strategies for mitigating the adverse effects of overconfidence bias in investment decision-making.},
        keywords = {Investment, Overconfidence, behavioural Bias},
        month = {May},
        }