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Investment Behaviour:A Study of Relationship between Investor Biases and Myers Briggs Type Indicator Personality


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1 University School of Management Studies, Guru Gobind Singh Indraprastha University, New Delhi, India
     

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Times are changing and so are investors, investment options and investment managers. Investment managers need to bring together a dynamic mix of understanding of the financial market and the investors profile. The study is aimed at identifying relationship between demographic variables, risk taking behaviour, investor biases, investment pattern and MBTI personality assessment of investors in India. Myers-Briggs Type Indicator (MBTI) is an individual personality preference instrument, which has been used in this paper to predict investment biases. This relationship should throw some light on how should investment managers respond to changing investment behavior based on investors personality types.

It was seen that most of the sample investors are balanced or conservative in terms of their investment behavior. MBTI personality types are a significant factor which affects risk taking behaviour of investors. Age, gender, work place activity, marital status are non significant factors to shape up investors risk taking behaviour. The results of this study can be highly useful for investment advisors, portfolio managers, and financial investment agencies as they can choose and define a product for their clients based on their gender, age, work experience, marital status, personality type and risk taking attitude. The investment advisors should try to evaluate personality of their client before offering them any product.


Keywords

Investor Profile, Investment Pattern, Investment Bias, Myers-Briggs Type Indicator.
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  • Investment Behaviour:A Study of Relationship between Investor Biases and Myers Briggs Type Indicator Personality

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Authors

Divya Verma Gakhar
University School of Management Studies, Guru Gobind Singh Indraprastha University, New Delhi, India
Deepti Prakash
University School of Management Studies, Guru Gobind Singh Indraprastha University, New Delhi, India

Abstract


Times are changing and so are investors, investment options and investment managers. Investment managers need to bring together a dynamic mix of understanding of the financial market and the investors profile. The study is aimed at identifying relationship between demographic variables, risk taking behaviour, investor biases, investment pattern and MBTI personality assessment of investors in India. Myers-Briggs Type Indicator (MBTI) is an individual personality preference instrument, which has been used in this paper to predict investment biases. This relationship should throw some light on how should investment managers respond to changing investment behavior based on investors personality types.

It was seen that most of the sample investors are balanced or conservative in terms of their investment behavior. MBTI personality types are a significant factor which affects risk taking behaviour of investors. Age, gender, work place activity, marital status are non significant factors to shape up investors risk taking behaviour. The results of this study can be highly useful for investment advisors, portfolio managers, and financial investment agencies as they can choose and define a product for their clients based on their gender, age, work experience, marital status, personality type and risk taking attitude. The investment advisors should try to evaluate personality of their client before offering them any product.


Keywords


Investor Profile, Investment Pattern, Investment Bias, Myers-Briggs Type Indicator.

References