<h1>Investor panic in market downturns driven by loss aversion, herd and recency bias - stick to long-term, diversified plans</h1> A press release explains that investor panic during market downturns in a mutual fund scheme stems from behavioural biases-loss aversion, herd and recency effects, overconfidence-and emotional reactions amplified by news flow and past experiences, which can prompt premature redemptions that lock in losses. It advises adherence to long-term objectives, diversification, systematic investment plans, periodic goal reviews and professional advice to mitigate impulsive decisions. The release promotes an asset manager's disciplined investment framework emphasizing information, analysis and behavioural insights. It reiterates that mutual fund investments are subject to market risks and investors should review scheme documents and assess suitability before investing.