How Your Behaviour Affects Investments

Behavioural science can tell you the future of your wealth.

- Rajas Kelkar (The author is editor-in-chief at www.moneyminute.in)

As you welcome the New Year, you must focus on your investment beliefs, preferences and social interaction tendencies. They affect your decision-making ability. For example, a study of investors in the United States cited in the latest National Stock Exchange bulletin highlights neuroticism as a trait affecting investment decisions.

Your emotions determine the course of your actions. Negative emotions can gather pace almost immediately after you suffer losses. That could be a factor in the bad timing of entering the market. However, you may keep hanging on to those negative emotions longer than required.