New Delhi, March 24 -- "Ordinary folks with no financial education can be wealthy if they have a handful of behavioral skills that have nothing to do with formal measures of intelligence," wrote Morgan Housel in his book The Psychology of Money. He says a "genius who loses control of their emotions can be a financial disaster."

In other words, behavioural biases commonly affect how people make decisions, and they can have a significant impact on investment outcomes.

"After having followed the markets for a considerable number of years, the one thing I can say with some certainty is that markets are driven not just by data and fundamentals-they are driven by human behavior," says Krishan Rao, MD & co-head - Equity Broking Group, JM Finan...