1. As in our daily lives, technology-driven herd mentality is also very much evident across all asset classes - be it gold, equity, debt or real estate.
2. It's difficult to convince investors that a financial plan based on logic and risk-profiling has a much better chance to serve their financial goals than one based on this behaviour, as most investors are driven by their emotional traits.
3. As outcome of an investment decision depends on product’s performance as well as investor's temperament, we should ideally choose products that suit our temperament.
4. The temperament is reflected by a person’s ability to ride the course without being distracted by noises, event flows, "limbic" apps, etc., and his own conviction to go against the herd mentality.
5. When investment decisions are made by following what others are doing, that too reflects on investors' personality, but herd mentality should be avoided consciously.
6. It is also often seen that rather than trying to tell investors that they should make investment decisions based on logic, those who are selling investment products sell the ones which are in vogue, by giving what the clients want but not what they need, although such decisions could have serious long-term repercussions.
2. It's difficult to convince investors that a financial plan based on logic and risk-profiling has a much better chance to serve their financial goals than one based on this behaviour, as most investors are driven by their emotional traits.
3. As outcome of an investment decision depends on product’s performance as well as investor's temperament, we should ideally choose products that suit our temperament.
4. The temperament is reflected by a person’s ability to ride the course without being distracted by noises, event flows, "limbic" apps, etc., and his own conviction to go against the herd mentality.
5. When investment decisions are made by following what others are doing, that too reflects on investors' personality, but herd mentality should be avoided consciously.
6. It is also often seen that rather than trying to tell investors that they should make investment decisions based on logic, those who are selling investment products sell the ones which are in vogue, by giving what the clients want but not what they need, although such decisions could have serious long-term repercussions.