This study examines how behavioural biases affect Indian retail investors' investment
choices. Using information gathered from 120 retail investors in Delhi and the National
Capital Region using a structured questionnaire, five biases were investigated: herd
mentality, fear, greed, confirmation bias, and recency bias. PLS-SEM was used to analyse
the data using SmartPLS 4. The results indicate that the two most powerful predictors of
investing decision-making are herd mentality and confirmation bias. Fear, on the other
hand, has a major negative impact, indicating that investors who are more scared tend to
become less confident and less decisive in their investment choices. Greed and recency bias
were not found to be statistically significant. In total, 45% of the variation in investment
decision making could be explained by the model. The study comes to the conclusion that
social influence and preconceived notions are the main factors influencing investor
behaviour in India. Investors, financial advisors, and regulators may find the results helpful
in encouraging more logical and knowledgeable investing choices
Chapters in this book
- 1. A STUDY OF WORK SCHEDULES ON WORK-LIFE BALANCE AMONG HEALTHCARE PROFESSIONALS
- 2. A STUDY OF INTERVENTION OF AI IN BUSINESS AND SUSTAINABLE INNOVATION
- 3. ROLE OF DIGITAL WALLETS IN FINANCIAL EMPOWERMENT: INSIGHTS FROM MIDDLE-AGED DELHI- NCR RESIDENTS
- 4. A STUDY OF CORPORATE SOCIAL RESPONSIBILITY OF SELECT INDIAN COMPANIES
- 5. INTEGRATION, CHALLENGES, AND FUTURE DIRECTIONS OF SUSTAINABLE PRACTICES IN FINANCE AND MARKETING
- 6. ROLE OF PERCEIVED RISK ON ADOPTION OF MOBILE WALLET: FACTORS INFLUENCING CONSUMER TRUST AND USAGE
- 7. GROWTH AND DETERMINANTS OF E-COMMERCE IN INDIA: AN EMPIRICAL STUDY
- 8. DECODING THE FUTURE OF HEDGE FUNDS: QUANTITATIVE MODELS VS. CONVENTIONAL APPROACH
- 9. THE USE OF DIGITAL PAYMENTS MEDIA AND ITS IMPACT ON CONSUMER BEHAVIOR
- 10. A STUDY OF ACADEMIC PRESSURE AND COPING STRATEGIES AMONG MARGINALIZED STUDENTS
- 11. AWARENESS TOWARDS PRADHAN MANTRI BHARTIYA JANAUSHADHI PARIYOJANA AMONG URBAN YOUTH
- 12. EXPLORING THE HEALTH IMPLICATIONS OF OVER-THE-COUNTER (OTC) MEDICATION
- 13. GIG ECONOMY IN INDIA: A SYSTEMATIC EXPLORATION OF WORKER EXPERIENCE, INEQUALITIES AND SOCIAL PROTECTION FRAMEWORKS
- 14. IMPLICATION OF DIRECT AND INDIRECT TAX IN INDIA
- 15. SUSTAINABLE ADOPTION OF AI IN HRM
- 16. CONSUMER TRUST AND PERCEIVED SECURITY IN ONLINE SHOPPING PLATFORMS
- 17. ANALYZING THE IMPACT OF HERD MENTALITY ON INVESTMENT PATTERN IN INDIA: A BEHAVIOURAL FINANCE PERSPECTIVE
- 18. CORPORATE SOCIAL RESPONSIBILITY (CSR) IN THE TATA GROUP
- 19. THE USE OF DIGITAL PAYMENTS MEDIA AND ITS IMPACT ON CONSUMER BEHAVIOR IN GROCERIES
- 20. DIGITAL TRANSFORMATION IN HUMAN RESOURCE MANAGEMENT
Abstract
Keywords
Behavioural Finance Herd Mentality Confirmation Bias Fear Greed Recency Bias Investment Decision Making PLS-SEM India
Chapter information
| Chapter title | ANALYZING THE IMPACT OF HERD MENTALITY ON INVESTMENT PATTERN IN INDIA: A BEHAVIOURAL FINANCE PERSPECTIVE |
|---|---|
| Author(s) | Vani Aggarwal, Mohammed Rashid | Sharda School of Business Studies Sharda University, Greater Noida |
| Book title | Sustainable Value Creation: Integrating Marketing and Finance for SDG Achievement |
| Book Doi | https://doi.org/10.67103/IRG.SVC.2026.9788168516441 |
| DOI | https://doi.org/https://doi.org/10.67103/IRG.SVC.2026.9788168516441.17 |
| Publication date | July 10, 2026 |
| Access | Restricted access |
| Copyright | © 2026 IRG Press. All Rights Reserved |
How to cite
Vani Aggarwal, Mohammed Rashid | Sharda School of Business Studies Sharda University, Greater Noida. 2026. ANALYZING THE IMPACT OF HERD MENTALITY ON INVESTMENT PATTERN IN INDIA: A BEHAVIOURAL FINANCE PERSPECTIVE. In: Sustainable Value Creation: Integrating Marketing and Finance for SDG Achievement. Book Doi https://doi.org/10.67103/IRG.SVC.2026.9788168516441. https://doi.org/https://doi.org/10.67103/IRG.SVC.2026.9788168516441.17