Asset Management

Behavioural finance

Behavioural Finance is a field that combines psychological insights with economic and financial theory to explore why people make irrational financial decisions. It challenges the traditional assumption that investors are rational and markets are efficient. Students delve into cognitive biases such as overconfidence, loss aversion, and herd behavior, which can lead to anomalies in financial markets, such as bubbles and crashes. The subject also examines how emotions and cognitive errors influence investment choices and market outcomes. Through studying Behavioral Finance, students gain an understanding of the psychological factors that impact investor behavior and learn to apply this knowledge to enhance financial decision-making and strategy.