Know the five behavioural biases that are damaging your investments
Individuals as well as sophisticated fund managers, are not immune to these biases and beliefs.
The field of behavioural finance points out several beliefs and biases that hamper investment decisions and lead to sub-par investment returns. Individuals as well as sophisticated fund managers, are not immune to these biases and beliefs. They stem from different sources and profoundly impact how we think and go about our investments. While some notions, such as discipline and patience, help in the investing journey, certain biases can prove to be roadblocks in our wealth creation journey. One should steer away from these five biases: