In a year defined by the uncertainty of a pandemic, many retail investors became active in the capital markets.
Behaviour
Mental accounting
We tend to treat money differently based on how we obtain it or what we intend to spend it on.
Behavioural insights and fraud
Fraudsters use clever tricks to take advantage of our human nature.
Active choice making and defaults
Defaults have a powerful effect on behaviour because we are most likely to choose the option provided.
How overconfidence bias may affect your financial decisions
People tend to overestimate their abilities, intellect, character, and even luck.
Familiarity bias
People try to make things simpler by gravitating towards investment decisions of familiar products.
Inertia
Are you putting off investing for later, even though it may be in your best interest to get started now?
Herd behaviour: When following the crowd isn’t in your best interest
Learn more about the strong desire you may have to follow what others do.
Behavioural insights: key concepts, applications, and regulatory considerations
Behavioural insights recognize how people actually behave versus traditional economic and market theory of people as rational actors.