Impact of Herd Behavior on Financial Risk Tolerance After COVID-19

The study presented here is one of its own kind in reference to this particular sample area, considering all types of investments (whether risky or non-risky assets). It helps to generate a result applicable on a much larger domain in the absence of focus on equity investments only. The aim of the paper is to find the influence of herd biasness on financial risk tolerance of the individual investors, especially after Covid-19 situation. It will help to understand the effect of psychology on financial decision making. For this purpose the data has been collected from 5 different districts namely Kanpur, Allahabad, Varanasi, Agra and Lucknow (capital); popularly known as KAVAL cities of Uttar Pradesh, India. With the help of structured questionnaire the level of herd biasness has been estimated and financial risk tolerance has been calculated by using GL-RTS scale. The findings suggest an inversely proportionate relationship found between herd biasness and financial risk tolerance among individuals