Influence of Market Catastrophe and the Herd-in-style on the Mutual fund Investor’s Behaviour Evidence from India

Abstract

Every investor has a healthier and safety investment through mutual fund and their investment are affected by several aspects and market catastrophe is the nucleus that acts as an antecedent for their investing decision.  This study specifically explores the impact of the factors that influencing the investor behaviour. Additionally, it examines how the market devastation mediating the investor’s decision and behaviour through herd-in style and loss aversion and for this purpose, 519 mutual fund investors in India were surveyed on the topic selected through simple random sampling. The result revealed that market catastrophe has a significant impact on the investor decision when moderating through the herd in style of the investors and there was no association found between the loss aversion and the investor’s behavior and decision. Those who have equipped with financial literacy and awareness towards corporate governance could defeat impact of market meltdown.