Impact of Herding Bias on Investment Decisions:

A Case Study of North Karnataka

Dr.Amit Mirji
Assistant Professor,
Department of Management,
Government First Grade College, Sindagi-586128
email: amitmirji@gmail.com

Abstract:

Behavioural finance is a rapidly growing field, but it is still at a nascent stage in the
developing countries, like India. Thus, this area offers tremendous possibilities for the
researchers in terms of exploring behavioural biases, interpreting investor behaviour and
developing behaviourally adjusted market models. The present study captures the presence
and impact of Herding bias. Primary data is obtained from individual portfolio investors
through a structured questionnaire administered to them. The primary analysis was focused
on determining whether behavioral factors affect investor’s decision to buy or sell or hold
stocks.

Keywords: Herding, Investor Decision, Portfolio, Stocks.