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Understanding Economic Anomalies: The Case of the Disposition Effect

Economic theory often paints a rosy picture of rational actors making well-informed decisions. However, the real world is messy, and emotions and biases frequently cloud judgment. This is where economic anomalies come in – phenomena that defy traditional economic models. Let’s delve into one such anomaly – the disposition effect. What is the Disposition Effect? […]

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India’s Wealth Management Industry: A Booming Market in Transformation

India’s economic rise is fueling a phenomenal growth in its wealth management sector. Boasting a current value of around $429.1 Billion and a projected CAGR of 4.56% by 2029, the industry is witnessing a surge in High Net Worth Individuals (HNWIs) seeking professional financial guidance. This is further emphasized by a projected 58.4% increase in […]

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Master Your Investments: Strategies to Beat Cognitive Biases

Making decisions is an inherent part of life, whether it’s choosing what to have for breakfast or making complex financial investments. However, human decision-making is often influenced by cognitive biases, which can lead to irrational choices and suboptimal outcomes. In this article, we’ll explore three prominent cognitive biases: the Gambler’s Fallacy, Self-Serving Bias, and Money […]

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Mind Over Money: How Regret Aversion Bias Can Wreck Your Portfolio

Introduction Regret aversion bias is a cognitive phenomenon that significantly impacts investment decision making, leading individuals to avoid decisive actions out of fear of regretting their choices in hindsight. This bias can result in holding onto losing positions too long, shying away from market opportunities, and exhibiting herd behavior. Understanding regret aversion bias is essential […]

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Deciphering the Behavioral Impact of Prospect Theory in Wealth Management

Introduction In the realm of finance, traditional theories have long assumed rational decision-making by investors. However, the advent of prospect theory, pioneered by Daniel Kahneman and Amos Tversky in 1979, revolutionized this perspective. Prospect theory illuminates how investors deviate from rationality, shedding light on the intricacies of human behavior in financial decision-making. Understanding Prospect Theory […]

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Unraveling the Enigma of the St. Petersburg Paradox

Introduction The St. Petersburg paradox stands as a baffling conundrum in the realms of probability theory and decision-making. Originating from a theoretical lottery game, the paradox presents a scenario where the expected payoff is infinite, yet rational individuals would assign it only a negligible value. Delving into its history and implications sheds light on fundamental […]

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Master Your Money Mindset: A Guide to Behavioral Finance

In recent years, behavioral finance has emerged as a captivating subject within the realm of economics, particularly drawing attention from investment professionals. Despite its newfound popularity, many individuals responsible for managing substantial portfolios may not have encountered the principles of behavioral finance during their formal education. Nonetheless, the practical implications of this field are profound […]

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Building Wealth for Every Stage: The Life Cycle Investment Strategy

Introduction to Framework: Managing wealth throughout one’s life involves navigating various risks and uncertainties, each requiring a tailored approach for effective mitigation. From disability and death to market volatility and longevity, the evolving nature of risks demands a comprehensive strategy. The Life Cycle Investment Advise Model addresses these challenges by focusing on lifetime consumption as […]

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Senior Citizen Savings Scheme (SCSS): Key Features and Benefits

The Senior Citizen Savings Scheme (SCSS) is a popular investment option specifically designed to provide financial security and regular income for senior citizens in India. Backed by the Government of India, SCSS offers a safe and attractive investment avenue with several key benefits. This article reflects the recent changes made to the Senior Citizen’s Savings […]

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