These are the core principles that define Oxford Risk’s approach to suitability. These principles are united by applying academic insights to improve investor outcomes. They are about behavioural finance in real life.
The trouble with cool heads is that they make plans for other cool heads, when in fact they should be making plans for an entirely different beast.Selecting good investments is important, but achieving good investment outcomes is more so.Personal feelings may feel too nebulous for the numbers-driven world of investing. Yet investing is a human activity, and humans buy stories, not numbers.
Behavioural Economics is a rapidly expanding field and everyday new research is being developed in academia, tested and implemented by practitioners in financial organisation, development agencies, government ‘nudge’ units and more. This interview is part of a series interviewing prominent people in the field.
Never gamify at the expense of accuracy. Gimmicky games trivialise risk tolerance, they do not test it.Helping clients navigate complexity is better than pretending it can be cost-effectively avoided. The real returns from an understanding of the customer are preferable to an artificial understanding by the customer.Humans and tech perform best when they play together. Managing moving financial and emotional parts benefits from blending human and technological qualities.