Understanding Herd Behaviour And Risk Among Investors In Gujarat

Abstract

The study delves into investors' behavioural biases, emphasizing the importance of understanding herd behaviour and risk appetite. It acknowledges previous scholarly contributions on similar topics. The study aims to gauge these behaviours and risk appetites among investors in Gujarat state, assessing the impact of demographic variables. Utilizing a descriptive research design, primary data was collected through questionnaire using convenience sampling from 1164 respondents across five major cities of Gujarat. Analysis revealed 68% respondents exhibited herd behaviour. 32% of the respondent were in high risk appetite category. However, demographic variables such as age, gender, education, employment, and income showed no significant effect on herd behaviour. Furthermore, the correlation between herd behaviour and risk appetite was found to be 0.076, indicating a negligible linear relationship, suggesting they are essentially independent or have minimal association. These findings were derived from Chi-Square, descriptive statistics, and correlation analysis conducted using SPSS software.