What are Investment Biases?

Human behaviour sneaks into money decisions more than we realise. A passing impulse, a familiar shortcut, a "this feels right" moment, they all influence how we save and invest. These patterns are called investment biases, and they often lead us away from what actually works.

Our Investment Mistakes campaign brings these little habits to life through everyday situations, so you can spot the same behaviours in your financial choices and avoid decisions you may regret later.

Investment Mistake #12: Following the Herd

Ever caught yourself doing what everyone else is doing… without stopping to think why?
This moment captures that instinct a little too well. Watch the film to see how it plays out.

Investment Mistake #17: Getting Ahead of Yourself

That sudden burst of confidence that goes from “I’ve got this” to “oh no, I really don’t”?
You’re going to recognise this one. Watch the film to see what happens next.

Investment Mistake #17: Getting Ahead of Yourself

That sudden burst of confidence that goes from “I’ve got this” to “oh no, I really don’t”?
You’re going to recognise this one. Watch the film to see what happens next.

Common Biases in Investing

How Mutual Funds Help You Look Beyond Biases

Biases make investing emotional. Mutual Funds make it structured. With professional management, diversification, and discipline, they help you stay focused on your financial goals instead of short-term impulses.

Pick a goal below and see how Mutual Funds can help you get there.

Wealth Creation
Regular Income
Wealth Creation & Regular Income
Pig Icon

Invest through SIPs or a lumpsum to potentially grow your money over time.

Use our SIP investment calculator to estimate returns and plan better.

20,000
10K 1Cr
12
2% 4% 6% 8% 10% 12%

Did you know: The Nifty 50 Index has delivered a CAGR of 12.42% over the last decade (June 1, 2014 to May 31, 2024)

10
01 30

Invested Amount

₹ 24,00,000

Total Investment Value

₹ 44,80,718

Invested Growth

₹ 20,80,718

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Aim to grow your investment, then withdraw a fixed amount monthly through an SWP.

Use our SWP Calculator to plan a steady income stream.

1,00,00,000
1L 1Cr
1,00,000
10,000 2,00,000
8
2% 4% 6% 8% 10% 12%

Did you know: The Nifty 50 Index has delivered a CAGR of 12.42% over the last decade (June 1, 2014 to May 31, 2024)

10
01 30
Almost there
!

Your curent investment set-up may not last for the entire SWP period.

Please revise the investment amount or SWP duration to keep going.

Investment Amount

₹ 1,00,00,000

Residual Amount

₹ 35,76,823

Amount Withdrawn

₹ 1,20,00,000

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Build wealth with SIPs or lumpsum investments, then switch to a lower-risk fund and start an SWP when you need regular income.

Use our calculator to plan both potential growth and withdrawals.

1
Plan your Growth
20,000
500 1L
12
2% 4% 6% 8% 10% 12%

Did you know: The Nifty 50 Index has delivered a CAGR of 12.42% over the last decade (June 1, 2014 to May 31, 2024)

10
01 30
2
Plan your Withdrawal
Continue in same scheme
Switch to a new scheme
20,000
1K 2L
10
01 30
Almost there
!

Your curent investment set-up may not last for the entire SWP period.

Increase the SIP amount or extend the SIP duration to keep going.

Total Investment Plan in Same Scheme

Investment Amount

₹ 24,00,000

Investment Value

₹ 45,79,494

Amount Withdrawn

₹ 24,00,000

Residual Amount

₹ 53,98,625

Disclaimer: Past performance may or may not be sustained in future and is not a guarantee of any future returns. Please note that these calculators are for illustrations only and do not represent actual returns. The calculator alone is not sufficient and shouldn't be used for the development or implementation of an investment strategy. This tool is created to help the investor take an informed decision and is not an investment process in itself. Investors are advised to seek professional advice from financial, tax and legal advisor before investing.

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Got questions? We've got answers!

What are investment biases?

They are natural behaviour patterns that influence how we make money decisions, often without realising it.

Why is it important to recognize my biases?

Because recognising them helps you make more thoughtful, goal-aligned financial choices.

Do biases affect everyone?

Yes, new investors, seasoned investors, even finance professionals. No one is fully immune.

How do Mutual Funds help reduce the impact of biases?

By providing diversification, structured investing, professional management, and long-term discipline that keep emotions in check.

How do I choose the right Mutual Fund for my goals?

Start by identifying your financial goal, investment horizon, and comfort with risk. Use the calculators above or speak with your financial advisor.