Composite FOMO Index Conception Framework for Evolving Behavioral–Financial Paradigms in the Digital Economy of Society 5.0

Author : Dr. Vikas Shah, Aarav Shah, Aarush Shah

Abstract :The Fear of Missing Out (FOMO) in financial markets refers to the tendency of investors to engage in rapid, sentiment–driven decisions under conditions of perceived scarcity or urgency. Within the context of Society 5.0, characterized by the integration of cyber–physical systems, human–centric innovation, and interconnected socio–financial ecosystems, these behaviors are amplified by advancing technological, cultural, and psychological dynamics. This study introduces the FOMO Index Conceptual Framework (FICF), which integrates sentiment analysis, digital behavioral tracking, psychometric profiling, cultural adaptability metrics, pragmatic VUCA (volatility, uncertainty, complexity, and ambiguity) risk assessments, and ethical governance considerations. The framework is implemented alongside the FOMO Index Lifecycle Management and Evolving Categorization (FI LMEC) model, enabling continuous recalibration in response to macroeconomic, geopolitical, and technological transformations. A case study on Artificial Intelligence (AI) based investment illustrates the FICF’s capacity to associate elevated sentiment signals with accelerated trading activity while identifying structural factors that stabilize volatility. The FOMO index provides an adaptive and scalable instrument for predictive analytics, investment portfolio optimization, and systemic risk mitigation.

Keywords :AI-Based Investment, Behavioral-Financial, FOMO Index, Sentiment Analytics, and VUCA Risk Assessment

Conference Name :International Conference on Financial Engineering and Banking Management (ICFEBM-25)

Conference Place Nassau, Bahamas

Conference Date 1st Sep 2025