GLOSSARY

Buy/sell spread

A buy-sell spread is the difference between entry price and exit price of an investment option, and is a cost incurred by members each time they invest into or withdraw from an investment option.

Behavioural bias

Behavioural biases are common across investors, resulting in sub-optimal investment decision making. Examples included confirmation bias, where people seek opinions that agree with their own and ignore or discount dissenting views, loss-aversion bias, where investors hold on to poor performing stocks so they don’t have to realise a loss, and overconfidence bias, causing investors to […]