Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Loss aversion is a behavioural finance bias where the pain of losing money is felt more strongly than the pleasure of an equivalent gain, often leading to poor investment decisions.
Losing money hurts more than gaining the same amount feels good — often causing bad money decisions.
Can lead investors to hold losing stocks too long hoping to break even, or sell winners too early to lock in gains, both suboptimal from a pure return-maximisation standpoint.
An investor holds a falling stock for years hoping to "just break even," rather than reallocating to a better opportunity.
Losing money hurts more than gaining the same amount feels good — often causing bad money decisions.
Loss Aversion helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.