When emotions get the better of investment plans

The impulses to put our cash in this fund or that share come from any number of sources, whether individual feelings, perceptions, past experiences, information from peers, or just out of greed or fear.
The impulses to put our cash in this fund or that share come from any number of sources, whether individual feelings, perceptions, past experiences, information from peers, or just out of greed or fear.PHOTO: ST FILE
OCBC's Mr Vasu Menon says being aware of behavioural biases can help investors make less emotional decisions and better choices.
OCBC's Mr Vasu Menon says being aware of behavioural biases can help investors make less emotional decisions and better choices.
Citibank Singapore's Ms Chan San-San says relationship managers can help spot biases in investors and prevent costly mistakes.
Citibank Singapore's Ms Chan San-San says relationship managers can help spot biases in investors and prevent costly mistakes.

Financial experts offer ways to overcome behavioural biases that may cloud decisions

We like to believe we make rational investment decisions all the time but in reality, our actions are usually affected by emotions and biases - with the inevitable financial hit somewhere down the line.

The impulses to put our cash in this fund or that share come from any number of sources, whether individual feelings, perceptions, past experiences, information from peers, or just out of greed or fear.

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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 'When emotions get the better of investment plans'. Print Edition | Subscribe