Three key behavioural traps that investors need to guard against in the current scenario
Today, A conflux of global and local factors has resulted in a situation where Indian investors are particularly susceptible to falling prey to their own behavioural pitfalls. After a rip-roaring 2017, equity markets have entered an extended time-correction mode ahead of the 2019 general elections. The all-important earnings growth rate, though showing promise, is yet to find its sea legs. Debt mutual funds, hailed as the FD investor’s saviour not long ago, have mostly disappointed over the last year and a half. The purported real estate ‘turnaround’ story remains subject to speculation, as the sector appears to be putting together only a lacklustre recovery at best. An enigmatic motley crew of cryptocurrencies zoomed ahead in 2017 leading to a hectic proliferation of Bitcoin wallets, only to crash more than 60 percent from their year end highs. Aiming to keep your head above water amidst this bedlam? Here are the top three behavioural investing traps that you need to insulate yourself from right now.
The siren song of stories
Of all the behavioural traps that investors succumb to, few stand out like the innate tendency to fall prey to stories. The seductive allurement of stories, it would appear, is hardcoded into our DNA. In the investing world, the power of stories can prove especially dangerous, and can even serve to trigger a host of other dormant behavioural biases. Basically, stories regularly influence investment decisions; and usually not in a good way.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences