How Behavioral Finance is important for Wealth Management?

When it comes to investing your money, then you need to get the best possible advice. For this reason, investment advisory services based on customer discrimination approach listen carefully to the objectives and needs, enabling us to provide consulting advice compatible with each client individually plans. If you want to decide for yourself, but prefer to get the guidance and advice of investment professionals, or you're simply looking for an investment or want to do commissioned another department to manage your investment ideas, advisers will invest to support you to select the right solution according to your needs. Whatever your requirements, provide regular follow-up, and the investment expertise and advice is biased, advisory process is to help determine the methodology and the development of performance of the investment portfolio

Well explained by Mr. Georgei

Behavioral Finance is very crucial part of being financial advisor and/or wealth manager. This is because an individual might be impacted by cognitive and emotional biases that can influence his/her actions. Understanding these biases can ease the process of convincing to take certain actions such as holding securities in a bear market. Furthermore, behavior finance awareness makes it easier for the wealth manager to facilitate the change of certain actions such as overspending, underspending, not saving and so on.

Moreover, an advisor can educate himself/herself in order to understand why a certain client is behaving in a certain way, and act accordingly. 

Understanding behavioural finance provides a lens on the human side of financial decision making that can help us take a more rational view and remain committed to long-term strategies and goals during sudden market change. It can also help us to become more successful as investors, as it orients us with the proper reference points to be forward-looking and opportunity-seeking.