Make better investment choices

Choice is energetic. It means you have the freedom to find just the right breakfast cereal, car, or mutual fund that suits you. And it means that companies have to innovate, to come up with better products that stand out from the crowd. (There would be no hybrid cars or ETFs in a world where everyone always settled for “good ample.”) But choice additionally overwhelms. You’ve felt it when you’ve gone out for a quick trip to the grocery store and found yourself roaming the aisles for an hour. Or when you’ve scratched your head by which of 16 stock funds you should hold in your 401(k). Sheena Iyengar, a business professor at Columbia University, was among the first academics to study these real-world problems. In a series of ingenious experiments, she found that too many choices can cause humans to give […]

Original post by Technology news - Business 2.0 Magazine