An Evaluation of Herd Behaviour in Investment Decisions

Abstract

This study examines herd behaviour and its impact on investment decisions among Indian investors. Primary data from 100 structured survey respondents spanning students, private employees, business professionals, and others reveals that a majority of investors are influenced by peer actions despite access to fundamental market information. An inverse relationship between investment experience and susceptibility to herding is established. The findings support rejection of the null hypothesis, confirming that herd behaviour exerts a statistically meaningful influence on investment decisions and contributes to market inefficiency.