Behavioural finance and why it matters

  • 📰 Moneyweb
  • ⏱ Reading Time:
  • 19 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 77%

المملكة العربية السعودية أخبار أخبار

المملكة العربية السعودية أحدث الأخبار,المملكة العربية السعودية عناوين

Identifying and managing the biases that investors exhibit can lead to better investment outcomes.

The world of finance and investments is often associated with numbers and statistics, but the real-world experience looks a bit different, with behavioural patterns often playing a significant role in financial markets. Behavioural finance is the study of the psychological influences and biases that both investors and financial practitioners experience when making financial decisions.

To accommodate such investors, we often employ the bucket or layered approach to portfolio management, where each financial goal, whether it be income or growth, has its own sub-portfolio. The total portfolio is often less optimal than the perfectly-rational portfolio, but the client is more likely to remain invested, leading to a better overall outcome.

 

شكرًا لك على تعليقك. سيتم نشر تعليقك بعد مراجعته.
لقد قمنا بتلخيص هذا الخبر حتى تتمكن من قراءته بسرعة. إذا كنت مهتمًا بالأخبار، يمكنك قراءة النص الكامل هنا. اقرأ أكثر:

 /  🏆 5. in SA

المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

Steinhoff's former finance boss gets jail time in GermanySteinhoff's former European finance chief was handed a three-and-a-half jail sentence by a German court, making him the first person to be imprisoned over an accounting scandal.
مصدر: Fin24 - 🏆 21. / 63 اقرأ أكثر »