There has been a lot of research in recent times towards identification of factors that influence the final investing decision of the investors, there are certain factors which play a part subconsciously, in the decision that lead the investors to 'Invest IN or NOT in a certain option.
There are more than 15 Factors which have been identified which impact the investor behavior, five among them have found to be having the most visible impact based on the research.
Program Objective: The objective of this program is to inform the participants about these irrational behaviors and how to manage these for their clients using anchoring techniques and help them take rational and informed investment decisions.
Following Behaviors will be discussed during the program
1.Lack of Self Control: Instant gratification V/S Delayed Gratification-Why are we not able to curtail expenses?
2. Procrastination :Farther the Goal, Delayed the action- Why do we delay investment?
3. Herd Mentality : Following the crowd, without looking at own requirement-Why do we believe friends and family more than Financial Advisors
4.Loss Aversion : Pain of losing Rs.10 is more than pleasure of gaining Rs.100
5.Perceived Financial Scarcity: Keeping the money in savings account to have instant access whether required or not :Why are we scared of money shortage despite having enough
Methodology: The program will be interactive in nature facilitated by the trainer with the help of Audio Visual Aids where the participants will be encouraged to participate in the activities.
Learning Outcome : After the program the participants will be able to identify the behaviors in the client that hamper the investment decisions and overcome them with the help of anchoring techniques discussed during the program.