Behavioural finance is clear about investor biases and the resultant suboptimal financial outcomes. At least three methods help mitigate behavioural biases when investing: education, investment process and goal-based investing.

Lack of education is a cognitive bias that, unlike emotional biases, is easy to mitigate by making investors more self-aware. By understanding how to control for behavioural influences, and the degree of control investors have over cognitive and emotional responses, investment advisers work with clients to achieve rational investment outcomes.

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