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Layer 3 · Industry Domain MasteryBehavioural Finance

Behavioural finance — why investors do what they do

Loss aversion, overconfidence, recency bias, herding — the cognitive traps that turn 12% fund returns into 9% investor returns. The edge most professionals never develop.

20 hours of content7 chaptersFree during Phase 1

Quick info

Layer
Industry Domain Mastery
Track
Behavioural Finance
Estimated hours
20 hrs
Chapters
7
Cost on Trustner
Free
Full course material live

Every chapter below has Foundation, Deep Dive, and Advanced material — read in any order, expand each chapter to see the full content.

About this course

Markets are rational; the people in them are not. Behavioural finance maps the cognitive traps that turn 12% fund returns into 9% investor returns. The edge most professionals never develop.

Who this is for

  • Investment advisers, fund managers, and analysts.
  • CFP and CFA candidates layering soft skills on hard knowledge.
  • Self-investors who want to beat themselves before they beat the market.

What you'll learn

  • The catalogue of biases — what they are, when they fire, who they hurt
  • Behavioural portfolio construction — accommodating, not pretending around, biases
  • Coaching clients through bull-market euphoria and bear-market panic
  • The investor-return gap and what closes it

Course material — 7 chapters

Each chapter offers three tiers — Foundation for the core concept, Deep Dive for worked examples and practitioner depth, and Advanced for edge cases and exam tips. Click any chapter to expand.

  1. 1
    Chapter 1

    Two systems thinking — and why it matters here

    • Kahneman's System 1 / System 2
    • Implications for investment decisions
    FoundationDeep DiveAdvanced
  2. 2
    Chapter 2

    The bias catalogue

    • Loss aversion, anchoring, recency, herding, overconfidence
    • Confirmation, hindsight, availability
    FoundationDeep DiveAdvanced
  3. 3
    Chapter 3

    Prospect theory in practice

    • Asymmetric loss-gain perception
    • Implications for risk profiling
    FoundationDeep DiveAdvanced
  4. 4
    Chapter 4

    The investor-return gap

    • DALBAR-style studies in Indian context
    • Closing the gap — process and rules
    FoundationDeep DiveAdvanced
  5. 5
    Chapter 5

    Bear-market client conversations

    • Scripts for the panicking caller
    • Pre-committing rules before the bear arrives
    FoundationDeep DiveAdvanced
  6. 6
    Chapter 6

    Bull-market temptations

    • Recency and the chase for "the next multibagger"
    • When to disappoint a client
    FoundationDeep DiveAdvanced
  7. 7
    Chapter 7

    Behavioural portfolio design

    • Mental accounting and goal-bucket portfolios
    • Default options that nudge toward better behaviour
    FoundationDeep DiveAdvanced
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