How â€�Herding Effectsâ€� acts behind recent chit  fund scams (With a survey of Investment Avenue in  Asansol Durgapur Industrial area)

PARTHA MUKHERJEE; Dr. P.P. SENGUPTA

Volume : IV, Issue : VI, June - 2014

How â€�Herding Effectsâ€� acts behind recent chit fund scams (With a survey of Investment Avenue in Asansol Durgapur Industrial area)

Partha Mukherjee, Dr. P. P. Sengupta

Abstract :

Making investment decisions is important and distinct concepts. It differs from person to person. Behavioral finance is the study that seeks to identify such dimensions of financial decision&amp;ndash;making. Our study aims to gain knowledge about key factors that influence investment pattern and investment decision. Keeping in mind paper aims: (1) To study the profile of investors in terms of demographic variables. (2) Applying the behavioral finance to identify the possible behavioral factors influencing the investment decisions of individual investors at Asansol&amp;ndash;Durgapur Industrial area. (3) Seeks to understand correlation between perception of investors&amp;rsquo; financial belief and financial need. Spearmans correlation between these two variables (Belief &amp;amp; need) shows (R=0.452). Data was collected through self&amp;ndash;constructed questionnaire (cronbach alpha= .56) Financial planners and financial institutions get a clear picture before launching an investment instrument. General people also aware about the factors act behind chit fund scams and also for other scams.