Primer on the principles in behavioural finance

• Key behavioural aspects: heuristics, mental accounting and mental bias
• The application of context effect, asymmetric dominance and choice overload in investment making decision
• Risk perception and informal risk management: how investors misperceive risk and fail to manage it properly

• Recognising and identifying the default settings of the investor’s minds
• The application of mental accounting in asset allocation decisions
• The use of mental accounting in metering the pricing of financial products
• The application of anchoring in setting the initial reference point

• Overview of the neuroscience’s perspectives on risk and reward motivated behaviours
• Behavioural biases: the various pitfalls in investor psychology
• Designing financial products

• Combining the application of context effects, decoy effects, mental accounting and reference dependent on decision making
• The template for choice architecture for investors’ optimal investment objectives