Page 18 - Orient Finance PR Report - December 2023

Navigating intricacies of behavioural finance and its impact on investment stability - Biz Today
In order to mitigate such behavioural biases of investors and avert unprecedented downfalls due
to it, several technologies and data analysis techniques have been introduced. Solutions like
robo-advisers, which rely on algorithms to construct and manage portfolios, reducing emotional

decision-making, help investors to make rational decisions. The tools are based on cutting-edge
technologies like artificial intelligence and machine learning that can assist in making informed

decisions. Furthermore, financial advisors with expertise in behavioural finance can guide
investors in better understanding and differentiating emotional and psychological factors that
can overturn financial decision-making process. Through such assistance, investors can make

rational choices that align with their long-term investment goals.

Evaluating the psychology of consumer investment decisions through the lens of behavioural

finance is beyond an academic exercise and it is a practical necessity for anyone navigating the
intricacies of the financial world. Recognising such complexities can help to make informed
decisions, avoid unprecedented pitfalls and attain long-term investment goals. In the ever-

evolving landscape of finance, studies linked to behavioural finance hold significant potential in
transforming our investment portfolio and ensuring stability.

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