How to reach your life goals

Reason in Action

A 6 part series on behavioural biases - those mental habits that unconsciously influence our decisions.
Dive deeper to explore the key behavioural biases shaping how we think and act.

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Challenge your automatic responses to make smarter, more rational financial decisions!

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Our behaviours aren’t always entirely rational. For example;

  • After hearing about a plane crash, we may suddenly develop a fear of flying.
  • We often allow contracts such as insurance, telephone, internet to auto-renew without exploring potentially better options.
  • In the media, we tend to seek out opinions that reinforce our existing beliefs. 

Most of the time, our daily decisions are shaped by mental habits we aren’t even aware of.
 

What are behavioural biases?

  • These are mental shortcuts or habits that our brains use to make quick  decisions, even if these shortcuts don't always lead to the best decisions.
  • In finance, these shortcuts can sometimes cause irrational investment choices that are not in our best interest.

What are behavioural biases?

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Some Key facts

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Some Key facts

  • Overconfidence is the most common behavioural bias affecting financial decisions1, and impacts up to 87% of people1.
  • On average, individuals experiences three to five different biases that can influence their financial decisions. 1, 2
  • Overconfidence, loss aversion, and the tendency to stick to the status quo, are among the most common biases shaping investment decisions.1, 2

Why is it useful to understand behavioural biases?

  • More rational investment decisions: Understanding behavioural biases can strengthen your investment discipline and help you avoid impulsive, emotion-driven choices that could hurt performance.
  • Better risk management: being aware of your biases helps you avoid common mistakes such as overexposure to certain types of assets.
  • Improved long-term performance: A more disciplined and thoughtful approach can help you maintain consistency in achieving your long-term financial goals.

Why is it useful to understand behavioural biases?

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Explore the chapters of the series

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Why maintaining the status quo could be costing you more than you think

"Nothing ventured, nothing gained." proverb
Chap2 - raison en action 2 titre

The fear factor: loss aversion in investing

"Losses weigh more heavily than gains." Daniel Kahneman, 2022 winner of the Nobel Memorial Prize in Economics

Illustrations : Cléo Wehrlin

1 Ruggeri, Kai, et al. Financial decision-making, income, cognitive biases: The impact of economic systems and environments on behavior in six countries. No. f8hyk_v1. Center for Open Science, 2024.
2 Ruggeri, Kai, et al. "The persistence of cognitive biases in financial decisions across economic groups." Scientific Reports 13.1 (2023): 10329
3 Behavioural Biases Among Retail and Institutional Investors | Amundi Research Center
4 Shefrin, Hersh. Beyond greed and fear: Understanding behavioral finance and the psychology of investing. Oxford University Press, 2002.
 

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 31 October 2025. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
Date of first use:  31 October 2025
Doc ID: 4851412
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