Try buying an insurance plan or an MF and most of us will freeze because there are too many options
That even smart people make dumb money mistakes is now fairly well established. We are not the Econ 101 textbook perfect economic agents who maximize utility with perfect calm, using all the perfectly disclosed information to make the most logical decision. Notice how you spend the next time you go to a mall and the textbook version of yourself goes out of the window. Look at your investment portfolio and the picture looks less and less perfect. Hammering away at this notion of perfect markets with perfect economic agents has been behavioural finance, which has used experiments to bring real life into economics. One of the tenets of economics that has got turned upside down has to do with choice. Is more choice always good?