All of us are living in an imperfect world and with the growing imperfections in the financial markets the field of behavioural Finance is gaining importance. Due to uncertainty in the market regarding investment decisions people became confused and emotions tend to influence their investment decisions. This sometimes results in irrational financial decisions by the investors and which further contributes to the imperfection of the market. Behavioral finance provides explanations to the question why people make irrational financial decisions. It demonstrates how emotions and cognitive errors influence investors and the decision-making process.