AGE OF OVERTHINKING

Why too much information is making investors underperform

- Viral Bhatt

We live in a time when information is everywhere — on our phones, in our inbox, on social media, inside trading apps, and even in WhatsApp groups that claim to know tomorrow’s stock market direction today.

Ironically, this explosion of information has not made investors smarter.It has made many more confused, more anxious, and more prone to mistakes.

Welcome to the age of overthinking, where access to more data has not led to better decisions — only faster, more impulsive ones.

New investor problem

Earlier, investors struggled due to lack of information. Today, they struggle because they have too much of it.

© Every day the market moves, 200 explanations appear online.

© Every correction comes with 50 expert predictions.

© Every rally creates 100 stories of someone doubling their money.

This constant overload creates mental pressure: “Am I missing something? Should I change my fund? Is my SIP in the wrong scheme?” Investing used to be about patience. Now it feels like a 24x7 psychological battle.

Cost of overthinking

Globally, investor behaviour is now tracked through DALBAR and Morningstar studies. The conclusion is shocking but consistent:

The average investor earns far less than the market — not because of bad investments, but because of bad decisions.

In India too, AMFI data shows that SIP investors who simply do nothing and stay invested earn 2-4% higher returns than those who frequently switch, redeem, or change strategies.

Overthinking leads to:

@ Excessive checking of NAVs

® Panic selling

© Constant switching between funds