Fear of Missing Out: A Catalyst for Investment Choices

Abstract

'Fear of Missing Out' is feeling of anxiety that arises when someone thinks they are missing out on events, information, experiences, this gives a significant implication in financial markets, particularly in shaping investor behavior and decision-making. This study explores how FOMO influences individual investors to make impulsive & often irrational investment decisions, influenced by the anxiety of missing out on future gains and also examines various factors contributing to FOMO. Further study discusses the role of digital platforms and social media in amplifying FOMO, leading to more frequent and emotionally driven trading behaviors. Understanding the mechanisms of FOMO and its effect on financial decision-making is vital for developing strategies to mitigate its adverse effects, promoting more rational and disciplined investment practices. The study adopted survey technique taking data from 204 individual investors from Delhi NCR using google forms.The research provides insights into the behavioral finance field, emphasizing the need for investor education & behavioral interventions to manage FOMO and enhance market stability.