5 Behavioral financial biases
Behavioral bias is not a complex sounding investment theory. It is a concept that has intrigued researchers around the world. The core of this theory is very basic. Because of our experiences, conditioning and personalities we think in certain and follow certain non-existent thumb rules. Be it in investing or life, biases make us do things which are sometimes illogical and irrational. In this video you will learn about 5 basic behavioral biases, how they impact mutual fund investing and how you should avoid them. The five behavioral biases are:
1. Anchoring
2. Loss Aversion
3. Choice Paralysis
4. Recency
5. Herd Mentality