WEBVTT

00:00:00.000 --> 00:00:03.760
 And even if they are, client problems are always your problems.

00:00:08.560 --> 00:00:11.200
 Now that we have discussed the pitfalls occurring because of

00:00:11.200 --> 00:00:12.240
 these biases,

00:00:12.240 --> 00:00:15.440
 we will move to discuss four best research proven methods and

00:00:15.440 --> 00:00:17.360
 strategies to minimize their effects.

00:00:17.360 --> 00:00:20.600
 Here's a playbook you can follow. It will help you as an MFD to

00:00:20.600 --> 00:00:22.080
 guide your clients in the right

00:00:22.080 --> 00:00:25.660
 direction. The first step for an MFD is to actively educate

00:00:25.660 --> 00:00:27.680
 clients about these biases

00:00:27.680 --> 00:00:31.000
 before they make mistakes, organizing regular workshops, short

00:00:31.000 --> 00:00:33.200
 webinars or even simple WhatsApp

00:00:33.200 --> 00:00:37.200
 infographics that highlight common traps like herding or loss aversion.

00:00:37.200 --> 00:00:37.840
 When you make your

00:00:37.840 --> 00:00:41.240
 clients aware of the various pitfalls involved in biases, you

00:00:41.240 --> 00:00:43.360
 reduce the chances of them acting

00:00:43.360 --> 00:00:47.080
 on impulse. In fact, research shows that consistent training

00:00:47.080 --> 00:00:49.120
 and awareness programs can reduce

00:00:49.120 --> 00:00:52.820
 biased investment decisions by up to 40%. The second method is

00:00:52.820 --> 00:00:54.960
 of structured investment processes.