‘A must read for those interested in the art and science of investment and wealth management by integrating traditional finance with behavioural finance, life cycle with investment cycle, and financial and non-financial wealth.’
- Vijay Sonawane, Director and CEO, Jay Capital Ltd, London
‘The book provides integrated perspectives on physical, social, and emotional treasures besides the financial wealth. The valuable and practical insights in the book can make investing life simpler, richer, and more enjoyable.’
- Dr Poonam Tandon, Chief investment officer, IndiaFirst Life Insurance Company
‘. . . [The book] provides simple and practical advice for understanding common biases and avoiding errors in financial decision making, thus leading investors to long term investment success.’
- Navneet Munot, Managing director and chief executive officer, HDFC Asset Management Company Limited
Since the start of the 20th century, India’s GDP has been growing at an average of 6-7 per cent and the World Bank predicts India to become one of the fastest growing major economies in the world. The lack of social security benefits for the common citizen coupled with favourable factors like structural reforms, young population, high rates of savings and consumption, and waves of digitalisation and financialisation are driving both domestic and global investors to the Indian capital market in pursuit of higher risk-adjusted return.
But with the increasing globalisation and rising volatility, the common investors often fall prey to their personal biases (fear, greed, overconfidence, loss aversion, etc.). This behaviour is at variance with traditional finance which holds that the investors are rational and markets are efficient. The overload of investment tips flowing from television, print, social media, conferences, and investment gurus further adds to investor confusion.
Prakash Praharaj and Nirakar Pradhan, two well-known investment advisors, have come together to document their decades-long learnings and practical experience into a very useful, comprehensive volume. Your Everyday Guide to Behavioural Finance sheds light on the theory of behavioural finance and nineteen dominant behavioural biases in an accessible and easy-to-understand manner. It offers a framework for identifying, assessing, and managing one’s own behavioural traits (biases) to enhance investment success. The book also recommends Behaviourally Modified Asset Allocation (BMAA), a tool to synchronise the investment portfolio with the life cycle of the investors.
So, whether you are a financial advisor, portfolio manager, or an individual investor yourself, Your Everyday Guide to Behavioural Finance will provide you with an integrated perspective to craft efficient and effective investment strategies irrespective of external market noises.
About the Author
Prakash Praharaj, M.Com (Gold Medalist), CAIIB, CFPCM
Praharaj has working experience of more than thirty years with Reserve Bank of India, United India Insurance Co, State Bank of India, and SBI Life Insurance Co. He has also been a visiting professor of finance at ITM (Vashi), IIBM (Sanpada), and IBSAR. He has published several articles in various prestigious newspapers including The Mint Money, The Financial Express, The Economic Times, The Business Bhaskar, and The Indian Express and is the author of Your Everyday Guide to Personal Finance and Insurance.
Dr Nirakar Pradhan, Ph.D, CFA, FRM
Nirakar is a CFA charter holder and certified financial risk manager from GARP, USA. He has over three decades of experience in the financial sector in India and Europe. His previous assignments include head of investment control at Generali Investments (Paris), CIO at Future Generali India Life Insurance Company Limited (Mumbai), head of Investments at SBI (Frankfurt), and head of treasury at SBI Gilts, now DFHI (Mumbai). He is currently chief executive officer, India, for PRMIA (Professional Risk Managers’ International Association) and is also a practising SEBI registered investment advisor.
