This course aims to cover the important concepts underlying behavioural finance, the impact it may have on investment performance (e.g. behavioural biases) and the actions that a private wealth manager may take to remedy these issues (including strategies such as client profiling, portfolio construction, and advisory lifecycle).
On completing this course, you should be able to:
a. Understand the definition of behavioural finance and its purpose for private wealth management (“PWM”) and investment management;
b. Illustrate with an example how loss aversion and risk aversion may affect customers;
c. Identify the potential impact of behavioural biases on investor decision process and customer investment performance; and
d. Apply strategies to deal with customer biases, including risk profiling process, risk evaluation and portfolio construction and risk management.
1. Introduction to behavioural finance
2. Customer profiling
3. Behavioural biases
4. Prospect theory
5. Customer advisory lifecycle, customer biases and behaviours
6. Behavioural bias in the real world
Who Should Attend
It is primarily targeted to CPWP candidates who wish to take the CPWP Module 1 Paper 2 Examination. It is also relevant to those PWM practitioners who would like to enhance their knowledge and skills in wealth management.