Our study of 1,200 emerging affluent, affluent and high net worth investors in Hong Kong, Singapore and Taiwan reveals how individual personality traits can impact investment decisions and outcomes.
Putting behavioural insights to work
Information about individual financial personalities can help investors and wealth advisors understand where emotional traps lie and take steps to avoid them and stick to their long-term plans. This can be accomplished through customised sharing of market information, tailored assistance with decision-making and more personalised investment solutions, using recent progress in technology to make the approach achievable at scale.
Personalities differ by market
The number of each investor type in the markets revealed how geographic and cultural differences shape behaviours and personalities. For example, Hong Kong has the highest proportion of Enthusiastic investors. Singaporean investors, in contrast, tend to fall into the Comfortable category. Taiwan is at the other end of the spectrum with most investors mapping to the Conservative archetype.
"Our investment approach, based on beating cognitive biases, helps clients recognise what can compromise their ability to make objective decisions, especially during periods of extreme market volatility. "