Everyone likes the sound of something that is unique or even exotic. Would you rather own a fund that invests in equities or one that invests in equities with a call option writing overlay strategy to enhance the yield? Marketers know the second option sounds more appealing and rarely will they mention there is a trade-off as some market environments favour the first option.
Behavioural finance has gained a considerable amount of popularity over the past few years as it pertains to investing. Among other things, it highlights how humans appear to be hardwired to make certain systematic mistakes despite our best efforts.