Behavioral Finance for Private Banking

Sound investment theory doesn't always translate well into private financial advising because clients come with a diverse mix of emotional, cultural, and biological biases. After all, they are human. As financial advisors, it's often difficult to custom fit investment strategies to the personal traits of private investors. Behavioral Finance for Private Banking offers a prescriptive framework to personalize investment decisions with insights from behavioral psychology. From assessing a client's behavioral biases to building an optimal portfolio and successfully managing it over time, this practical guide serves as a deep resource of up-to-date information and robust tools for the everyday advisor. In addition to fresh insights and the latest best practices from the original authors, fellow thought leader at BhFS, Enrico De Giorgi joins this Second Edition to offer greater depth of coverage into the mathematics behind the strategic solutions inside. In addition to illuminating the useful research and theories behind behavioral finance, this comprehensive reference for the real world also debunks the most common myths about investor behavior and offers concrete approaches to handling each type of investor personality. New advisors and experienced ones, alike, can add a valuable layer to their skillsets by mastering how to: Expertly align asset allocation and investment products to client risk profiles and perspectives Understand which clients will rebalance, take profits, or increase risk during the lifecycle of their portfolios Apply the latest findings in behavioral finance to enhance your wealth management process Grow wealth in a way personally advantageous to each client with Behavioral Finance for Private Banking, Second Edition.