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'Emotional comfort' investment decisions made during the pandemic could cost retail investors dearly, says Oxford Risk

'Emotional comfort' investment decisions made during the pandemic could cost retail investors dearly, says Oxford Risk

Behavioural finance experts Oxford Risk says many of the investment decisions retail investors make are for emotional comfort, and it estimates that on an average year this typically costs them 3 per cent in returns. However, given the increased level of market volatility during the pandemic, and that the level of emotional decisions made by investors in terms of managing their portfolios has increased dramatically, the cost of this will be more – in some cases it will be much higher.