“The investor’s main problem — and even his worst enemy — is likely to be himself.” For good investment investors need to be logical with a practical approach while managing their money. But doing so is often easier said than done. Everyone is different and accordingly thinks and acts differently based on their circumstances, conditioning, and past experiences. It is also fair to say that, more often than not, investors feel a gamut of emotions during their investment journey. This can lead them to make flawed decisions as emotions are likely to dominate and reason. These feelings, or prejudices, as they are known, can play a significant role in the investments they make. Therefore, it becomes important to have an idea of ​​the types of
investment bias
Which can impede the decision making ability of the investor so that they can stay away from them.
In this article, we have enumerated 7 such biases that investors can try to avoid while investing in mutual funds. Read on to find out more.
Disclaimer:
Useful information for investors: All mutual fund investors need to go through a one-time KYC (Know Your Customer) process. Investors should deal only with registered mutual funds, which are to be verified on SEBI’s website under ‘Intermediaries/Market Infrastructure Institutions’. For redressal of your grievances, you may kindly visit www.scores.gov.in. For more information on KYC, changes in various details and redressal of grievances, visit mf.nipponindiaim.com/investoreducation/what-to-know-when-investing This is an investor education and awareness initiative by Nippon India Mutual Fund.
The information provided here is for general reading purposes only and the views expressed constitute opinion only and therefore cannot be construed as guidelines, recommendations or professional guides for readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources considered reliable. Sponsors, investment managers, trustees or any of their directors, employees, affiliates or representatives (“entities and their affiliates”) assume no responsibility, or warrant, for the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretation and investigation. Readers are also advised to seek independent professional advice to arrive at an informed investment decision. Entities and their affiliates, including persons involved in the preparation or release of this material, shall not be liable in any way for direct, indirect, special, incidental, consequential, punitive or exemplary damages, including loss of profit arising from the information contained reason is also included. in this material. Only the Recipient shall be solely responsible for any decision made on the basis of this document.
Mutual fund investments are subject to market risks, read all the documents related to the scheme carefully.