How to Build Emotional Discipline in SIPs – Stay Calm and Stay Invested Introduction SIPs (Systematic Investment Plans) are built on consistency. But emotions often disrupt this path — fear during market crashes or greed during bull runs can tempt investors to stop or change SIPs. Building emotional...
Overconfidence in DIY Investing – When Confidence Outruns Capability Introduction Investing on your own feels exciting — you’re in control, making the calls. But when investors overestimate their knowledge, they often fall into the trap of overconfidence. Overconfidence in DIY mutual fund investing ...
Recency Bias – Falling Into the Past Returns Trap Introduction It’s tempting to assume that a fund which performed well recently will continue to do so. That’s recency bias — a cognitive shortcut where recent events heavily influence decisions. In mutual fund investing, this often means buying into ...
Confirmation Bias in Fund Selection – Are You Only Seeing What You Want to See? Introduction Ever searched for a fund that only supports your beliefs? That’s confirmation bias — a powerful mental shortcut where investors look for information that confirms what they already believe while ignoring con...
Loss Aversion – Why We Exit Early Introduction Imagine losing ₹1,000. Now imagine gaining ₹1,000. Most people the pain of the loss much more than the joy of the gain. This is loss aversion — a powerful behavioural bias that causes investors to exit mutual funds prematurely, especially during downtur...