Behavioral Finance and Biases in Investing

A uniquely designed residential programme offered to the working executives across India.

Session starts from 02 Dec 2024

Session ends on 05 Dec 2024


    Behavioral Finance and Biases in Investing

    Every day, we are faced with numerous decisions. Should I cross the road now or wait for the oncoming truck to pass? Do I want fries or a salad for lunch? What amount should I tip the cab driver? Often, we make these decisions effortlessly, relying on heuristics, which are mental shortcuts that help us navigate our lives. These shortcuts are crucial as they prevent us from being overwhelmed by the countless choices we encounter. However, there are situations where these shortcuts can lead to predictable errors. By being aware of these errors, we can avoid falling into their traps. For instance, did you know that we have a natural inclination to sell investments that are performing well but hold onto those that are performing poorly? It's also common for us to select suboptimal insurance payment plans and purchase insurance that is unnecessary. Furthermore, many of us fail to enrol in our employer's corporate retirement plans, even when they offer matching contributions. Behavioral finance focuses on studying these and various other financial decision-making errors that can be avoided if we understand the biases behind them. In this workshop, we explore these predictable errors and identify the areas where we are most susceptible to them. The aim is to provide participants with guidance towards making better financial choices. By learning how to enhance our spending, saving, and investing decisions, we can improve our financial well-being for the future.


    Get to know what the programme is all about


    The following are the objectives of the workshop.

    • Explore the concept of “heuristic-driven bias,” which refers to our inclination to rely on rules of thumb that simplify the decision-making process but can also result in predictable errors. By understanding these cognitive biases, we can become more aware of their influence on our decision-making and make more informed choices.
    • Explore the classical economic model of consumer choice, which operates under the assumption that all our decisions are rational and sensible. We will examine the underlying theory of how individuals should behave, especially when it comes to financial decisions. However, our focus will shift towards analyzing how people actually behave in reality.
    • Pay particular attention to situations where we are prone to making decisions that seemingly contradict the principles of rational choice. By studying these scenarios, we aim to gain a deeper understanding of human behavior and decision-making processes in the realm of finance.

    A combination of lectures, discussions, presentations and hands-on practice of Excel based sessions would be conducted.


    This program is designed to benefit a wide range of participants, including managers and executives mid and senior level who are interested in learning about behavioral finance.


    02 – 05 Dec 2024.                        XLRI Jamshedpur.


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    Before registering get to know a bit about your director


    Dr. Malvika Chhatwani

    Prof. Malvika is currently working as an Assistant Professor of Finance at XLRI Delhi NCR. She is a finance enthusiast specialising in behavioural finance, financial economics and analytical finance. Her research area covers topics including financial decision-making, cryptocurrency, FinTech, household finance and behavioural finance. Her research has been published in several international journals of repute, including the Journal of Behavioural and Experimental Economics, the Journal of Business Research, and Personality and Individual Differences, among others. She holds a Ph.D. in Finance and Accounting from the Indian Institute of Management Indore. Prof. Malvika can be contacted by email at malvika@xlri.ac.in or malvika.chhatwani@gmail.com.


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    Management Development Programme