Testing portfolio strategies based on fundamental, technical and heuristically with behavioral objects and characteristics of Tehran stoke market investors

Subject Areas : Journal of Investment Knowledge

Esfandyar Shahmansuri ¹

1 - Ph.D. Candidate, Department of financial management ,Science and research Branch, Islamic Azad University, Tehran, Iran

Received: 2016-11-19 Accepted : 2017-02-12 Published : 2017-12-22

Keywords: Behavioral Portfolio Theory (B, Investing Strategies, Investment Objectives, behavioral characteristics, Investment performance,

Abstract :

Objectives and strategies have a significant relation with investors’ performance. In this research, we study and classified strategies and objects of individual investors in Tehran stock exchange. First investor’s objectives divided to 5 groups like financial capital growth, Building financial buffer, saving for retirement, hobby and speculation. Then their strategies classified in 3 conventional strategies: fundamental, technical and heuristically. Finally according to behavioral characteristics like risk taking, aspiration levels and over confidence we tested relation among these objectives and strategies with their investors’ performance. Testing behavioral portfolio based on investment objectives and investing strategies for simulation of 120 strategies during 1393-1389 shows that fundamental, technical and heuristically strategies with high risk portfolios have made higher return toward average Stock index. Results show that behavioral characteristic of investor’s has a significant effect on objectives and investing strategies and their performance. There is a relation between aspiration level and risk taking with investor’s objectives, especially there is a strong significant relationship for investors whose object is makes capital grow. Tests show that investors with technical strategy, has higher aspiration and risk taking level but the average yield of this approach is lower than average yield of fundamental strategy. These results are opposite of Shefrin and Hafman(2011) results. Investors, who use fundamental strategy in financial market of Iran, pursued Building financial buffer and capital growth.  

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