Behavioural Finance

Performance Chasing

Definition

What is Performance Chasing?

Buying recent winners or funds mainly because of past returns.

Example in practice

Money flows into a fund after its strongest year.

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.