ARCHIVES
VOL. 12, ISSUE 1 (2026)
Mind over money: Exploring the Impact of mental accounting on Indian retail investors’ decision-making
Authors
Dr. Prasad R A
Abstract
Mental accounting, a key concept in behavioral
finance, refers to the cognitive process by which individuals categorize,
evaluate, and treat money differently depending on its source or intended
purpose. This study investigates the influence of mental accounting on
investment decisions among Indian retail investors. A structured questionnaire
consisting of 20 items—8 demographic questions and 12 mental accounting-related
questions—was administered to a sample of 100 respondents. Descriptive
statistics, cross-tabulations, and inferential analyses were performed to
examine the relationship between demographic factors and mental accounting
behaviors and their subsequent impact on investment decisions. Results indicate
that Indian retail investors moderately engage in mental accounting practices,
including goal-based investments, differential treatment of windfall income,
and the disposition effect. Demographics such as age, gender, income, and
investment experience influence these tendencies. The study offers insights for
financial advisors, policymakers, and investors to align investment strategies
with behavioral patterns, improve financial literacy, and enhance wealth
management outcomes.
Download
Pages:158-161
How to cite this article:
Dr. Prasad R A "Mind over money: Exploring the Impact of mental accounting on Indian retail investors’ decision-making". International Journal of Commerce and Management Research, Vol 12, Issue 1, 2026, Pages 158-161
Download Author Certificate
Please enter the email address corresponding to this article submission to download your certificate.