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The tendency to stick with the default, and when it gets expensive
Published by The Retail Trader · AUG 03, 2026 · Trading Psychology
Doing nothing feels safe because there is no active mistake in it. But in a portfolio, not acting is also a decision, and it also has a result.
Sometimes this bias is useful — it stops you from changing your portfolio on every piece of news, and that is often the right thing.
The problem is when it extends to things that now genuinely need changing.
These situations are the most common:
• An old regular plan keeps running although direct is available.
• Nomination or KYC not updated for years.
• An allocation that is unchanged even after your life stage has changed.
• A fund that has changed its mandate or its manager.
The cure is also a fixed review date. The question on that day should be the reverse one — "what is the reason to keep this the same", not "what is the reason to change it". Making the default justify itself neutralises this bias.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no guaranteed-return claim, and is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.