Advisers and investment professionals need to strip their communications and decision-making for investors back to focussing on basic principles, according to Oxford Risk.
Speaking at the Future of Investment Festival today (5 June), head of behavioural finance Greg Davies explained the gap between expectations and future reality in investment decision making. "We get attached and end up making decisions that are very costly," he explained. To mitigate this, Davies said investors need to stick to four basic principles of good investing: work out what you can and cannot afford; invest it; diversify; and then leave it alone. "Our emotional responses along the journey are sometimes right, but very often wrong," he warned. "If we act on them, it's going ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
