Maximising my investment

As we get older, our perspective changes, different things interest us, priorities shift and targets are adjusted.

The illusion that we understand the past fosters overconfidence in our ability to predict the future. We experience this all the time at Forensic Finance when in final consultations with clients, it can often be cathartic for someone to let go of past experiences to clear a path to recover a poor-performing portfolio.

How can we legislate to counter confirmation bias in our lives regarding investments?

We are all somewhat de-sensitised to it when these large numbers are constantly quoted. In a recent survey, people were asked if they understood the size of specific numbers. Here is how the survey worked.

Statistics show that as of 2020, there was some $56.92 Trillion invested in Mutual funds ( Statista) Over the last ten years, the amount of funds available on the market has increased by over forty per cent.

The use of Statistical analysis is a cornerstone of investment strategies across the world. Using statistics to prove or disprove a point in a debate or political argument is commonplace. Without exaggeration, I have sat in hundreds of presentations from investment fund representatives and managers covering every asset class you can imagine. All of them will produce back-tested data that statistically proves their investing method is a winner.

In this article, we intend to highlight some factors that WILL affect your investment outcome. We have come across countless amounts of savers and investors that are unaware of this or believe it does not impact them.