Abstract:

Excessive confidence that prevents individual investors from making rational decisions, tendencies such as avoidance of regret, especially with intense social and psychological effects, can influence investors’ investment decisions during crisis, instability and uncertainty periods such as Covid-19. The aim of this study is to study the investment behavioral finance trends of individual investors during the Covid-19 pandemic period in the context of their socio-demographic characteristics and some investment habits. For this purpose, the answers of 384 individual investors were accessed through the online survey method. The results of the analysis showed that investors prefer investment options that are low-risk and relatively less income, but are more reliable, where they are mostly intended to protect the capital from uncertainty and risks during the pandemic period. Investors’ behavioral financial trends, such as risk assessment, avoidance of risk and uncertainty, avoidance of losses, are generally highlighted. Women, those aged 56 and older, retirees, and those living with their families have been the highest risk and uncertainty groups. Economic and financial developments, those who often follow investments, and those who see themselves as financial readers, tend to avoid risk and uncertainty. Keywords: Covid-19, Financial Investment, Behavioral Finance JEL Classification: D14, G41, G50

Keywords:

Abstract:

Tendencies such as overconfidence, avoidance of regret, which prevent individual investors from making rational decisions, can be effective in investment decisions of investors, especially in times of crisis, instability and uncertainty such as Covid-19, which has intense social and psychological effects. The purpose of this research is to examine the investment behavioral finance tendencies of individual investors during the Covid-19 pandemic period in terms of socio-demographic characteristics and some investment habits. For this purpose, the answers of 384 individual investors were accessed via online survey method. The results of the analysis showed that during the pandemic period, investors avoided uncertainties and risks more, preferred low-risk and relatively less income, but more reliable investment options, mostly aiming to protect capital. Behavioral finance tendencies of investors such as risk assessment, risk and uncertainty avoidance, and loss aversion have come to the fore. Women, those aged 56 and over, retirees, and those living with their families were the groups with the highest risk and uncertainty avoidance. Those who frequently follow up on economic and financial developments and investments, and those who consider themselves financially literate, have a low tendency to avoid risk and uncertainty.