How Behavioral Finance Affects Your Investment Decisions: The Role of an MFD in Managing Investor Behavior
In the world of investments, the biggest risk isn’t the market—it’s the investor’s own behavior. Decades of research in behavioral finance show that investors consistently make irrational decisions driven by emotions, biases, and herd mentality. This is where Mutual Fund Distributors (MFDs) play a crucial role—not just as product advisors, but as behavioral coaches who help investors stay on track, avoid costly mistakes, and generate superior long-term outcomes.