What type of investor are you?

Mar 19, 2019

4 mins | Views 2960

Investing is fun? Well, the answer depends on who you are. Yes - even though investing and financial planning is a field of study with rules and theories; investors are beings with their own nuances, stage of life quirks and fondness to finance and investing.

These nuances give us some interesting types that can be summarized into the following:

Mr. Fixed Returns: If it's not certain then, "it's not worth it" - is his motto. Assurity of returns and safety of institutions is paramount. The very thought of volatility is terrifying and any exposure to asset classes like equity, commodity etc. is not his cup of tea. The comfort of a certificate promising an ‘x’ interest rate is best remedy for sound sleep at night.
Daddy's Boy / Girl: The love of outsourcing and the Indian parents’ need to manage their child till his / her age of 60 gives rise to this category. A lot of us are guilty of this at least in our first investment which is done on dad’s recommendation and usually by our investment uncle. What better than have our experienced parents make the decision for us and we get to remain carefree. Not a bad strategy and responsibility free life does lend itself to blissful sleep.
Madam Pushy: She knows her stuff or if she doesn't, she learns it. Just as she perfects the “masalas” in her kitchen, she ensures that her husband never misses an important due date - be it the bills, EMIs, insurance premiums or SIP dates. She is a pro at managing money and makes sure, between her and husband, saving pools, insurance and investments are well maintained. Leaving uncertainty out, Madam definitely has her family sleeping peacefully at night.
Mr. Tips: His day is made on tips - best stock to buy, best deposit, best mutual fund etc. The tips are actioned on the validity of source and not checked for soundness even though it's usually just a click away. Tips are free and often come in SMS or underground social handles. There is much loss to be incurred on such spurious tips seeking behaviour but the joy of having a tip that is ahead of others is the ultimate rush. He can also be named as Mr. Get-Rich-Quick as that is his ultimate aim. Regretfully, there are many nights that are spent rueing investing based on such tips but a new day is just that - hunt for a new tip.
Mr. Planned: He has it all planned out. He is not savvy but ensures that he gets the right advice. He researches not to be knowledgeable but in finding the right advisor and plan for himself. Though not as smart as madam savvy, with the help of good advice, he usually meets all his goals. Discipline more than knowledge is what most financial oracles say about creating wealth and attaining financial freedom. Mr. Planned in that sense is the original monk by default. He sleeps peacefully in the knowledge that his financial planning secures all that he cares and loves.
Mr. Protection: Fear is his main driver. Similar to a hypochondriac, he seeks solace in insuring all his needs. There is no differentiation between insurance and investment. Like Mr. Fixed Returns, he finds market returns as terrifying as a hypochondriac would shudder at the probability of a common headache turning out to be a tumor. Hence, the panacea of insurance is all that he seeks.
Mr. Sing-A-Long: Unfortunately this is a growing breed where EMIs and need to live life today is more important than savings and future needs. Life is a song very much like that of the cricket that sang away during the summer and scoffed at the hard working ants. The trip to top 10 destinations, gadgets and various other bucket lists defines life. Dreams are about what is next.
Madam Gold: All that shines should be gold. Gold is the traditional investment that Indians including Madam Gold, are still finding hard to wean off. Stored away in beautiful jewellery designs and bought out for all social occasions, gold has a heady ownership value. It is easily stored, malleable and coveted. It's the traditional family heirloom, travelling generations. It wrings great emotions if it has to be sold. People would rather pawn it in the hope that someday it will be paid off. It is stuff of movies and what our granny would recommend. A bed of gold is the ultimate soporific.
Mr. Real-Estate: After Gold, real estate is another favourite haven for Indians to park their money. Mr. Real Estate lives by the motto that future is made only by buying property. He doesn’t mind compromising joys of today, but a line up of real estate is the only thing that gives him a good night’s sleep.
It's fun to invest and have net worth. As long as you are investing in a disciplined manner with right guidance, a lifetime of financial freedom and good night's sleep is guaranteed - marital & boss troubles aside.