Emotional Investing
Analyser

6-question quiz: how much are emotional decisions costing your returns? Get your behavioural investor score.

Answer all 6 questions for your personalised score0/6 answered

Q1 of 6

When the market falls 20%, what do you do?

Increase SIP — buying opportunityDo nothing — stay the courseCheck more but don't actConsider reducing exposureSell immediately to stop the pain

Q2 of 6

How often do you check your investment portfolio?

Monthly — for rebalancing onlyQuarterlyWeekly — want to stay informedDaily or moreMultiple times daily

Q3 of 6

You made a 30% loss on a stock. You:

Accept loss and rebalance per planHold and review in 3–6 monthsHold waiting for recovery (no plan)Average down without a clear planPanic sell everything in the sector

Q4 of 6

A colleague doubles money on a hot stock tip. You:

Stick to your asset allocation planResearch it — curiosity onlyResearch and consider if it fitsInvest a small amount just in casePut a large sum in immediately

Q5 of 6

Markets are up 40%. Your plan says 60/40 equity/debt. You:

Rebalance back to 60/40 as plannedReview next quarter — minor drift OKLet it run — equity is doing wellMove more into equity to ride the bullI don't have a formal allocation plan

Q6 of 6

How did you react during the COVID crash (March 2020)?

Invested more — great buying dipStayed the course despite anxietyAnxious but didn't sellSold some and later regretted itSold most and haven't fully re-entered

Your Score

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Complete all questions to see your verdict.

THE DALBAR EVIDENCE

Studies show retail investors earn 3–5% less per year than the index due to emotional decisions. On ₹10,000/month SIP over 20 years: index at 12% = ₹99.9L. Emotional investor at 7% = ₹52.4L. The ₹47L gap is pure behavioural cost — not market risk.

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Emotional Investing — The Hidden Return Killer

DALBAR research consistently shows retail investors underperform their own mutual funds by 3–5% annually due to emotional decisions: panic selling, return chasing, stopping SIPs when markets fall.

How much does emotional investing cost?+

Multiple studies show investors who paused SIPs during COVID crash (March 2020) and reinvested 6 months later missed 40–60% of the recovery. Over 20 years, this behavioural gap can cost ₹40–60L on a ₹10K monthly SIP.

How do I become a more disciplined investor?+

Three rules: (1) Automate SIPs — no manual intervention possible. (2) Write an Investment Policy Statement in advance covering when to sell and when to rebalance. (3) Stop checking portfolio daily — once monthly is sufficient for a long-term investor.

Emotional InvestingAnalyser

Emotional Investing — The Hidden Return Killer

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Emotional Investing
Analyser