Executive Education

Investment Decisions and Behavioral Finance

Programme Overview

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Behavioural finance offers exciting insights into the role of human behaviour in financial decision-making. It has greatly unravelled how individuals assess investment opportunities, formulate their portfolios and trade in the market. The insights brought about by behavioural finance are immensely valuable for an improved understanding of the behaviour of aggregate market prices. The behavioural finance approach is key to the understanding of the profitability of arbitrage opportunities in the market. It helps to identify the influence of market irrationality and formulate timely and focused investment and trading strategies. It offers promising directions in the structuring of products and its effective communication to clients. The practical applications which emerge from the recent advances in behavioural finance would be the key focus of the programme.

 

For more information or any questions, contact Hridam Agarwal: hridam-exed@iima.ac.in | +91 70690 10184

Participants’ Profile

Finance professionals involved in treasury operations, fund management, trading, financial product design and investment advice.

Program Objectives

Status of market efficiency Issues in real-world arbitrage Influence of biases and heuristics in markets Rational investing in irrational markets - asset allocation and trading Measuring and forecasting investor sentiment Financial advisor and investor psychology

Program Highlights

The programme takes participants through the implications of the departure from market efficiency on asset pricing and investment decisions. The programme exposes investment professionals in financial institutions to the practical applications of behavioural finance to improve their investment and trading outcomes. It also helps investment advisors in their role of advising asset allocation and trading to clients.

IIMA