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Behavioral Finance Finance Long-Form Article Series

History is not the Future

Setting the Context In this week’s article, we explore a plethora of topics, from “End of History Illusion” to “Pluralist Ignorance Effect”, concept of “Alternative Histories” and other such fluff from interdisciplinary domains, pivotal for investors to be cognisant about in the world of Finance. This particular read is tilted towards Behavioural Economics, Human Psychology, […]

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Behavioral Finance Finance

Behavioral Finance Series Part II

Part I gave a good introduction to what Behavioural Finance actually is. As a recap, Behavioural Biases can be divided into two categories namely, (I) Cognitive Errors and (II) Emotional Biases. In this post, let’s delve deeper and understand what our “Emotional Biases” are shall we? EMOTIONAL BIASES Emotional Biases are the types of behavioural […]

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Behavioral Finance Finance

Behavioral Finance Series Part III

SETTING THE CONTEXT So, in the previous two posts in the “Behavioural Finance Series” I had provided a brief introduction on the topic of Behavioural Finance, its distinction from the Traditional Finance Perspective and covered an overview of different types of Emotional Biases. If you’ve not already gone over those articles here’s the link, Part […]

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Behavioral Finance Finance

Behavioral Finance Series Part I

This week’s post is going to explore a topic I’ve perpetually been fascinated about – “Behavioural Finance”, specifically the various biases we might fall victim to! INTRODUCTION To provide you some context, Traditional Finance [TF] assumes that investors are “rational” decision makers and have access to perfect information equally. It characterises investors as risk averse […]

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Behavioral Finance Finance

Behavioural Models

Setting the Context: In a previous post, I had gone over the basics of different types of theories underlying Portfolio Management. Now, since these theories stem from the Traditional Finance perspective, I felt it was apropos to introduce a couple of theories which come under the realm of Behavioural Finance. Right, so let’s jump into […]