What does "INIE" stand for in common tendencies for investors managing their accounts?

The term "INIE" refers to "Inertia and default," which captures a common behavioral tendency observed among investors when managing their accounts. Inertia describes the tendency of individuals to stick with their current investment choices or to avoid making changes, even when circumstances change, because of a preference for maintaining the status quo. Default represents the choices investors make (or fail to make) when they are faced with complex decisions or financial options. Often, this leads to investors defaulting to pre-selected options or investments that they may not actively choose themselves, reflecting a passive approach to decision-making.

Understanding "Inertia and default" is crucial for recognizing how these behaviors can affect investment strategy and outcomes. Investors may miss opportunities or not respond effectively to market changes due to a reluctance to alter their existing strategies or decisions, underscoring the importance of awareness and proactive management in investing.