Less is more when it comes to investment choices, says new study
Tuesday, April 30, 2013 - 11:30
in Psychology & Sociology
The best investment portfolios are selected from the widest array of choices, right? Not so, says a new study authored by researchers at the University of Toronto's Rotman School of Management and the Bank of Canada. It says that a shorter "menu" of options is often better than a longer one. That's because "menu-setters" who develop shorter lists have superior selection skills, on average. The conclusion goes against findings in other research suggesting that more choices lead to better outcomes.