A REVIEW ON EMOTIONAL INTELLIGENCE AND INVESTMENT BEHAVIOR

Investors are bound to be emotional while taking investment decisions. Conventional literature has proved that investors become more emotional while choosing their portfolio. Investment decision making process also has evolved with the impact of psychology wherein emotions play an important role. Emotional stability is thus an influencing factor in investment decision making process which is identified by Emotional Intelligence (EI). There are various EI theories serving this purpose but all such theories are common EI theories and not specific to EI related to financial decision making process. Assessing an investor's behavior is a major task that should be carried out by the financial sectors in order to help investors take better decisions. Financial Institutions could introduce better products for investors knowing the behavior of investors. This study focuses on identifying the constructs necessary to identify the EI of investors through an extensive review stating the role that emotional intelligence plays in investment behavior of the investor. A conceptual model has been derived that states that Emotional Intelligence of an investor influences Investment Behavior.