Behavioural Finance

Home Bias

Definition

What is Home Bias?

An excessive preference for domestic investments over foreign assets.

Example in practice

A portfolio holds only local shares despite global diversification opportunities.

Keep learning

The tendency to feel losses more strongly than equivalent gains.

The tendency to overestimate one's knowledge, forecasting ability, or control.

The tendency to seek or interpret information that supports an existing belief.

Incorporating environmental, social, and governance factors into investment analysis or ownership.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.