Behavioural Finance

Examine the psychological, social, cognitive and emotional factors in investment



Competency Area

Investment and Financial Management


Analyse impact of emotional and behavioural biases

Analyse characteristics of traditional finance and behavioural finance decisions to yield better insights and improve decision making

Analyse portfolio construction, and investors’ behaviour decisions in line with emotional and behavioural biases

Research individuals’ behavioural and emotional biases to determine potential effects on investment decisions

Utilise theories of investment to examine investors’ behaviours

Mitigate the effects of emotional and behavioural biases

Monitoring the effect of behavioural and emotional biases on investment decisions

Develop approaches to mitigate the effects of behavioural biases on investment policy and asset allocation decisions

Evaluate effects of bounded rationality on decision-making

Classify investors according to personality types

Review the effectiveness of mitigation methods

Review the accuracy of identification and analysis of behavioural and emotional biases and their effects on investors’ decision- making

Review and ensure effectiveness of methods proposed to mitigate effects of biases for investors

Review personality type classification for investors