Understanding Self-Serving Bias & Why You Need To Take Responsibility How many times have you boosted your talent when things went right and luck when things did not go as planned? Most of us have done this multiple times and we are likely to do it few more times as well. And this behaviour in the field of behavioural financeis called as self-serving bias. Simply put, self-serving bias is the tendency to credit good outcomes to our skills and talents and unfavourable outcomes to fate and luck. Overconfidence and misattribution of causes are the two parts of self-serving bias. Examples of self-serving bias can be found in our day-to-day life. For e.g., a job applicant after being rejected can attribute it to the personal preference of the interviewer. Also, he may attribute his selection in the next interview to his qualifications and skills . In the investing world, we tend to attribute good performances of our investments to our investment skills and negative returns to the broade...

Emergencies come unannounced. No one can predict when it is going strike. The only thing that we can do is to prepare ourselves for any unforeseen circumstance. Having an emergency fund will help you to tide over emergencies like accidents, job loss etc.  Hence, building an emergency fund should be the first thing on your mind before you start investing for your financial goals. So, here’s everything you need to know about emergency funds. What are emergency funds? An emergency fund is like a cushion that helps you to sleep soundly at night. It is money that you put aside against life’s unexpected events. It is not to be used for planned purchases such as buying a house or new car or your child’s higher education. An emergency fund helps you to be prepared with anything that life throws at you. These emergencies can be accidents, immediate house repairs and job loss as well. Sorry, the late night pizza cravings is an emergency. Ideally, an emergency fund should be in liquid investm...

Multi Asset Allocation Funds: Features & Limitations Markets change all the time. During the early part of 2020, everyone’s eyes were on gold prices and international equities. And, now the equity markets are back to the pre-pandemic levels. Thus, we can see that different asset classes outperform other asset classes in different years. In the current scenario, many investors are looking for investment options that can help them take advantage of the different assets. In this article, we will see the different features of multi asset funds. What is Multi Asset Allocation Funds? Multi Asset Funds is a type of hybrid mutual fund that invest in multiple asset classes such as equities (domestic and international), debt, commodities, REITs and InvITs. According to SEBI’s definition of Multi Asset Funds, these funds should invest in at least three asset classes with a minimum allocation of atleast 10% each in all three asset classes. Features of Multi Asset Funds: Investment decision of ...