Training Course on Behavioral Finance and Investment Decision-Making for Financial Advisors

Course Outline

Module 1: Introduction to Behavioral Finance

ü  The Limitations of Traditional Finance

ü  Foundations of Behavioral Economics and Psychology

ü  Rationality vs. Bounded Rationality

ü  Heuristics and Biases: An Overview

ü  Importance for Financial Advisors

ü  Practical Session: Self-Assessment of Personal Cognitive Biases

 

Module 2: Cognitive Biases Affecting Investment Decisions

ü  Anchoring and Adjustment

ü  Confirmation Bias

ü  Framing Effects

ü  Hindsight Bias and Overconfidence

ü  Representativeness Heuristic

ü  Practical Session: Analyzing Investment Decisions Impacted by Cognitive Biases

 

Module 3: Emotional Biases and Investor Behavior

ü  Loss Aversion and Regret Aversion

ü  Endowment Effect

ü  Self-Control Bias

ü  Status Quo Bias

ü  Herding Behavior

ü  Practical Session: Role-Playing Client Conversations Addressing Emotional Biases

 

Module 4: Prospect Theory and Mental Accounting

ü  Core Principles of Prospect Theory

ü  Value Function and Probability Weighting

ü  Mental Accounting: Segregation and Integration of Accounts

ü  Its Application in Investment Planning

ü  Practical Session: Designing a "Mental Account" Portfolio for a Client Scenario

 

Module 5: Behavioral Portfolio Management

ü  Behavioral Factors in Asset Allocation

ü  Stock Picking Biases

ü  Trading Frequency and Portfolio Churn

ü  Diversification Pitfalls

ü  Practical Session: Reviewing a Portfolio for Behavioral Traps and Recommending Adjustments

 

Module 6: Behavioral Aspects of Risk Tolerance and Goals-Based Planning

ü  True vs. Stated Risk Tolerance

ü  The Role of Emotions in Risk Perception

ü  Behavioral Approaches to Risk Profiling

ü  Aligning Investments with Behavioral Goals

ü  Practical Session: Conducting a Behavioral Risk Assessment for a Client

 

Module 7: Communicating Effectively with Clients

ü  Framing Investment Advice

ü  Using Analogies and Narratives

ü  Active Listening and Empathy

ü  Managing Client Expectations

ü  Practical Session: Practicing Difficult Client Conversations (e.g., during market downturns)

 

Module 8: De-Biasing Strategies for Advisors and Clients

ü  Strategies to Mitigate Advisor Biases

ü  Techniques to Help Clients Overcome Their Biases

ü  Nudging and Choice Architecture

ü  Implementing Decision Support Systems

ü  Practical Session: Developing a "De-Biasing Checklist" for Client Interactions

 

Module 9: Market Efficiency, Behavioral Finance, and Neurofinance

ü  The Efficient Market Hypothesis Revisited

ü  Behavioral Explanations for Market Anomalies

ü  Introduction to Neurofinance

ü  The Brain's Role in Financial Decisions

ü  Practical Session: Analyzing a Market Anomaly Through a Behavioral Lens

 

Module 10: Ethical Considerations and the Future of Behavioral Finance

ü  The Advisor's Fiduciary Duty in a Behavioral Context

ü  Ethical Dilemmas in Client Behavior Management

ü  The Evolution of Robo-Advisors and AI

ü  Future Trends in Behavioral Finance Research and Practice

ü  Practical Session: Discussing Ethical Case Studies in Behavioral Financial Advice

About the Trainers

Our trainers are leading experts in behavioral finance and seasoned financial advisors with extensive experience in client-facing roles. They hold advanced degrees in finance, psychology, or economics and have practical experience implementing behavioral strategies with real clients. Their deep academic knowledge combined with hands-on application ensures that participants receive actionable insights and cutting-edge perspectives.

 

Quality Statement

Phoenix Training Center is committed to delivering high-quality, practical, and relevant training programs. Our courses are meticulously designed and regularly updated to reflect the latest industry trends and best practices. We strive to provide an engaging and supportive learning environment that empowers participants to achieve their professional goals.

Admission Criteria

ü  Participants should be reasonably proficient in English. 

ü  Applicants must live up to Phoenix Center for Policy, Research and Training admission criteria.

Terms and Conditions

1. Discounts: Organizations sponsoring Four Participants will have the 5th attend Free
2. What is catered for by the Course Fees: Fees cater for all requirements for the training – Learning materials, Lunches, Teas, Snacks and Certification. All participants will additionally cater for their travel and accommodation expenses, visa application, insurance, and other personal expenses.
3. Certificate Awarded: Participants are awarded Certificates of Participation at the end of the training.
4. The program content shown here is for guidance purposes only. Our continuous course improvement process may lead to changes in topics and course structure.
5. Approval of Course: Our Programs are NITA Approved. Participating organizations can therefore claim reimbursement on fees paid in accordance with NITA Rules.

Booking for Training

Simply send an email to the Training Officer on training@phoenixtrainingcenter.com and we will send you a registration form. We advise you to book early to avoid missing a seat to this training.

Or call us on +254720272325 / +254737296202

Payment Options

We provide 3 payment options, choose one for your convenience, and kindly make payments at least 5 days before the Training start date to reserve your seat:

1. Groups of 5 People and Above – Cheque Payments to: Phoenix Center for Policy, Research and Training Limited should be paid in advance, 5 days to the training.
2. Invoice: We can send a bill directly to you or your company.
3. Deposit directly into Bank Account (Account details provided upon request)

Cancellation Policy

1. Payment for all courses includes a registration fee, which is non-refundable, and equals 15% of the total sum of the course fee.
2. Participants may cancel attendance 14 days or more prior to the training commencement date.
3. No refunds will be made 14 days or less before the training commencement date. However, participants who are unable to attend may opt to attend a similar training course at a later date or send a substitute participant provided the participation criteria have been met.

Tailor-Made Courses

We understand that every organization has unique training needs. Phoenix Training Center offers tailor-made courses designed to address specific requirements and challenges faced by your team or organization. Whether you need a customized curriculum, a specific duration, or on-site delivery, we can adapt our expertise to provide a training solution that perfectly aligns with your objectives. Contact us to discuss how we can create a bespoke training program for you. For further inquiries, please contact us on Tel: +254720272325 / +254737296202 or Email training@phoenixtrainingcenter.com

 

Accommodation and Airport Pick-up

For physical training attendees, we can assist with recommendations for accommodation near the training venue. Airport pick-up services can also be arranged upon request to ensure a smooth arrival. Please inform us of your travel details in advance if you require these services. For reservations contact the Training Officer on Email: training@phoenixtrainingcenter.com or on Tel: +254720272325 / +254737296202