Asset Allocation & Risk

Are loss aversion and risk aversion the same thing?

ฉบับภาษาไทยของหน้านี้กำลังจัดทำ ขณะนี้แสดงเนื้อหาเป็นภาษาอังกฤษ

No. Risk aversion is a rational tendency to value an uncertain outcome below its expected value, i.e., the attitude of choosing the less risky option when expected returns are the same.

Loss aversion is a cognitive bias in which the same situation feels worse when framed as a loss, and it is distinguished by the fact that it can lead to errors of judgment. Risk aversion is a personal characteristic that should be reflected in the investment profile assessment, whereas loss aversion is closer to a psychological trap to be wary of.

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This answer is general financial information as of 14/10/2569, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.