Investor Behaviour and Portfolio Discipline

Overview:
Behavioural biases cause more loss than bad stocks. India’s Portfolio Management Service industry is embedding behavioural controls through process-driven frameworks.

Key Points:

• Studies show behavioural errors reduce returns by 1.5 – 3 percent per year (Fidelity Research 2024).
• India’s Portfolio Management Service assets grew 22 percent to ₹ 6.3 lakh crore in 2025 as HNIs sought structured discipline.
• Managers employ algorithmic rebalancing and factor limits to reduce impulse trades.
• Globally, behaviourally nudged accounts show 34 percent higher retention.
• Indian investors are adopting systematic review calls and quarterly risk scorecards like U.S. wealth firms.

Truvest Capital Insight:
Consistency is the new alpha – discipline delivers where emotion fails.

Disclaimer: Educational content only. Not investment advice.