Guest Lecture on Behavioral Finance by Mr. Parag Parikh at IIM Indore
October 01, 2005
"Behavioral Finance - Demystifying the Stock Market"

Previous

Session II
The second session further built on the previous session to explain the symptoms and solutions of the problems like loss aversion, sunk cost panacea, decision analysis and endowment. Most people's ears pricked up at the mention of a few tips and plans of action for investing in stocks. The speaker also had the audience in splits of laughter at different points during the session. One such occasion - "Analysis does not work in the market, but the analysts' job is always secure!"

Session III
The last session, began after the lunch break, where Mr. Parikh went deep into the concepts discussed in the previous two sessions to explain the reasons for the stock market bubbles and bursts. Different myths about the markets were cleared, and new ways of thinking about investments were instilled in participants.

Profile of the Speaker

Mr. Parag Parikh is one of the pioneers of Behavioral Finance in India. He is a member of Bombay Stock Exchange since 1983 and his firm, Parag Parikh Financial Advisory Services Ltd. (PPFAS), offers a variety of investment services like wealth management, portfolio management, mutual fund advisory, institutional broking and retail broking. Equity research, investment-based analysis and behavioral finance concepts form the core of the business model of PPFAS.

He holds a masters degree in commerce & economics from University of Mumbai. He completed a two-year "Owner President Management Program" at the Harvard Business School. He also attended a course on Investment Decisions and Behavioral Finance conducted by the Harvard Business School. He is also a Certified Financial Planner.

Concluded.

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Contributed by -
Shiv Dewan,
Secretary,
Media & Publications Committee,
IIM Indore.