Fixing A Freudian Slip In Investment

As humans, it is only natural for us to sway to our emotions. There are days when one feels euphoric because everything goes right— from finding less traffic on the way to a fruitful day at work and so on. Similar euphoria is witnessed amongst investors when the markets are performing well. The study of this, known as behavioural finance is important to understand how and under what circumstances people make certain financial choices.  It is thought that our investment decisions are taken rationally, but that is not always the case. “In investments also, one tends to make a decision based on fear, greed, optimism, pessimism, outlook, comparisons, herd mentality and many similar emotions,” says Madhupam Krishna, Sebi-registered investment advisor and Chief Business Officer at WealthWisher Financial Planners & Advisors. John R Nofsinger, Author, ‘The...