Behavioural biases

Be aware of problem, make adjustments

Investors need to calibrate their decision-making process to "adjust" for the potential impact of their behavioural biases.
Investors need to calibrate their decision-making process to "adjust" for the potential impact of their behavioural biases.PHOTO: BLOOMBERG
HSBC Bank's Deepak Khanna says the decisions one makes reflect one's individual traits.
HSBC Bank's Deepak Khanna says the decisions one makes reflect one's individual traits.
DBS Bank's Mr Brandon Lam says the fear of losing out - loss aversion bias - may be the basis of a gender investment gap.
DBS Bank's Mr Brandon Lam says the fear of losing out - loss aversion bias - may be the basis of a gender investment gap.
Ms Teh Hooi Ling of Swiss-Asia Financial Services says investors should be receptive to different views.
Ms Teh Hooi Ling of Swiss-Asia Financial Services says investors should be receptive to different views.

Adopt a portfolio approach, distinguish opinions from facts and invest for long term: Expert

Imagine you have to make a choice between two movies you want to watch today - do you go with your friend's recommendation even though it has poor reviews, or will you go with the more popular one?

Mr Deepak Khanna, head of wealth development at HSBC Bank (Singapore), says how you decide reflects your individual traits, which can sometimes work in your favour and other times not.

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A version of this article appeared in the print edition of The Sunday Times on September 16, 2018, with the headline 'Be aware of problem, make adjustments'. Print Edition | Subscribe