Why Investors Bought Thematic Funds at the Peak | Robert Shiller's Herding Instinct Explained

Robert Shiller Predicted Two Market Crashes. Are You Repeating the Same Investing Mistake? | Behavioural Finance Why do investors keep buying at market peaks? Nobel Prize-winning economist Robert Shiller may have the answer. In this episode of the Behavioural Finance Series, I explain one of the most powerful forces influencing investment decisions—the Herding Instinct. Robert Shiller, winner of the 2013 Nobel Prize in Economic Sciences, warned about both the Dot-com Bubble and the US Housing Bubble before they collapsed. His work showed that markets are driven not only by fundamentals but also by human psychology. Using the boom in India's thematic and sectoral mutual funds between 2023 and 2025, this video explains how herd behaviour influences investors and why many end up buying at peak valuations. In this video, you'll learn: ✅ Why Robert Shiller predicted two of history's biggest market crashes ✅ The psychology behind herd behaviour and social proof ✅ Why thematic and sectoral mutual funds attracted massive inflows ✅ How FOMO influences investment decisions ✅ Why buying after a theme becomes popular can be risky ✅ The questions every investor should ask before investing ✅ Practical lessons for building long-term wealth If you invest in Mutual Funds, SIPs, Stocks or ETFs, understanding investor psychology can help you avoid expensive behavioural mistakes and become a better long-term investor. Tell me in the comments: • Did you invest in thematic or sectoral mutual funds between 2023 and 2025? • Which investment theme attracted you the most? • Do you think you invested before the crowd—or after? There is no judgement here. This series is about recognising behavioural patterns so that we can become better investors. If you found this video useful, please Like, Share and Subscribe to M V Suresh WealthWise for practical insights on investing, mutual funds and behavioural finance. About the Presenter M V Suresh Fellow of The Institute of Cost Accountants of India (FCMA) Former Officer, Income Tax Department, Government of India (36 years of service) AMFI Registered Mutual Fund Distributor (ARN: 319437) Partner - Prudent Corporate Advisory Services Ltd. Partner – NJ Wealth Helping investors make informed financial decisions through education, behavioural finance and long-term investing principles. Topics Covered Behavioural Finance • Robert Shiller • Herd Behaviour • Herding Instinct • Investor Psychology • Mutual Funds • SIP • Thematic Funds • Sectoral Funds • Social Proof • FOMO • Long-Term Investing • Wealth Creation • Personal Finance • Financial Education • Market Psychology • Irrational Exuberance • Dot-com Bubble • Global Financial Crisis Disclaimer: This video is intended solely for educational and informational purposes. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any financial product. Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing and consult your financial advisor before making investment decisions. Hashtags #RobertShiller #BehaviouralFinance #MutualFunds #ThematicFunds #SectoralFunds #InvestorPsychology #HerdBehaviour #BehaviouralEconomics #Investing #PersonalFinance #SIP #WealthCreation #FinancialEducation #StockMarketIndia #IrrationalExuberance #NobelPrize #MVSureshWealthWise #InvestmentTips #LongTermInvesting #NJWealth

Added 1 Sept 2026