Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
The sunk cost fallacy is continuing an investment or decision because of resources already committed, even when it no longer makes financial sense going forward.
Sticking with a bad decision just because you’ve already put money or effort into it.
Rational decisions should ignore sunk (already spent, unrecoverable) costs and focus only on future expected outcomes, but investors often let past commitment cloud judgement.
Continuing to fund a failing business "because we’ve already invested ₹10 lakh" is a classic sunk cost fallacy.
Sticking with a bad decision just because you’ve already put money or effort into it.
Sunk Cost Fallacy helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.