Although modern financial theories often assumed rational investor behaviour, most of us do at times fall short of that particular “standard of behaviour”. Of course, most of us do not go out of our ways to be ignorant or irrational; but sometimes we are misled by cognitive and emotional errors which make us looks “irrational”.
Being aware of this is essential. Wealth managers who understand behavioural finance and incorporate its insights into their practices will improve the outcomes for their clients by making more prudent recommendations in a way that increases the odds that their clients will act upon them. By doing so, the clients they serve can thus benefit significantly from the application of behavioural finance to their unique circumstances. This course aims to do just that.
- the role of behavioural finance in managing wealth
- the various emotional biases that influence investing behaviour
- the various cognitive biases that influence investing behaviour
- how behavioural biases influence long-term investment
- how behavioural biases affect short-term trading decisions
Module 1: The Role of Behavioural Finance in Wealth Management
- Heuristics Biases
Module 2: Emotional Biases
- Loss Aversion Bias
- Overconfidence Bias
- Self-Control Bias
- Endowment Effect
- Status Quo Bias
- Regret-Aversion Bias
Module 3: Cognitive Biases
- Representativeness Bias
- Conservatism Bias
- Confirmation Bias
- The illusion of Control Bias
- The illusion of Control Bias
- Anchoring and Adjustment Bias
- Mental Accounting Bias
- Framing Bias
- Availability Bias
Module 4: Behavioural Finance and Long-Term Investment
- Portfolio Construction
- Investment Policy
Module 5: Behavioural Finance and Technical Analysis
- Do Cognitive Biases Create Trading Rule Profits?
The Financial Training Scheme (“FTS”) provides funding for financial sector-specific training programmes which are recognized under FTS. This scheme is only eligible for company-sponsored participants who are Singapore Citizens or Singapore Permanent Residents, physically based in Singapore, and who have successfully completed a FTS programme. Financial Institutions (MAS licensed or exempt entities), involved in or supporting financial sector activities, are eligible to submit claims for company-sponsored participants.
For all FTS programmes commencing on or after 8 April 2020 to 31 December 2021, MAS will enhance course fee subsidies for locals attending accredited or recognised courses up to 90% co-funding of direct training costs, subject to existing grant caps of S$2,000 per programme.
IBF will provide an additional 5% in support in the form of IBF Credit, bringing the course fee subsidy up to 95% of course fees subsidies until 30 June 2021. This existing scheme will also be expanded to include workers in eligible FinTech firms.
For more information, please refer to IBF website.
Terms and Conditions
1) This e-training programme takes approximately an hour to complete.
2) In order to qualify for Continuing Education credits from SGX, please complete all quiz questions found at the end of each tutorial (a 70% pass rate is required) by 31 December 2021.
3) Access to the e-training materials is valid to the end of the calendar year.
4) Upon successful registration, an online course access email will be sent to you within 2 working days. If you are new to Salmon Thrust online learning system, you will receive an additional invitation email to create your online account.
5) If participants wish to make any changes to their application or request for a refund, written notice should be given within 10 business days of receiving the access ID and password to the online programme and provided the access has not been utilised. There will be an administrative fee of 20% of the fees paid. There will be no changes or refund if notice is given thereafter or if the access has been utilised.
6) It is recommended to login the web browser via a personal computer.
7) For assistance please contact firstname.lastname@example.org or call 6670-6808.
(Operating Hours: 9.00am to 5.00pm)
This course is recommended for Trading Representatives and Professionals who need to meet their Continuing Education Credit.
SGX reserves the right to make changes to information regarding the programme if warranted by circumstances beyond its control.