Your Financial Personality
Through our Investment Philosophy and Financial Personality Assessment TM, you can not only understand yourself better, but also potentially reduce the effect your behaviour has on the value of your investments.
As individuals, we each have a unique approach to investing. Yet many people are not aware of what theirs is. Or that their behaviour can affect their financial goals.
The truth is we often have instinctive reactions when faced with financial decision-making. Our emotions, not our practical reasoning , often drive our choices – and affect our returns.
Our innate need for emotional comfort is estimated to cost the average investor around 3-4% in returns every year.* And for many, the figure can be much greater.
This shortfall in returns is partly caused by what is known as the Behaviour Gap. It explains the difference between long-term financial returns (if we were only to stick to sensible and simple rules for investing) and actual returns (which are determined by all our short-term decision-making, often based on our emotional needs).
A good example is how our investment strategy often goes off course in turbulent times. So despite the obvious costs, we can often end up buying high and selling low.
Barclays has developed a unique system, based on our expertise in Behavioural Finance, to help you identify your Financial Personality.
At Barclays, we use our proprietary Financial Personality AssessmentTM to understand how you are likely to react to various investment strategies and market conditions. We then use this information to design an asset allocation, and select appropriate investments, building a finely-tuned portfolio with investments differentiated to suit your financial personality.
* Source: Barclays Wealth & Investment Management, White Paper – March 2013, ‘Overcoming the cost of Being Human’.
Find out more
Private Client offices in India