Seven Types of Investor in India - In Which Category Do You Fall?
Do you often fail in your investments? Well, if yes, then we have a solution for you. But, before we move further, it is crucial to know the group of investors under which you fall because then only you will be able to analyse the reasons for your failure. All investors have their own opinions in buying investments which may vary from person to person.
If we take a closer analysis, they can be typically classified into seven categories based on their decision making. Once you know that which type of investor you are, you will be able to know your shortcomings which further can be healed. Let’s have a look at all the seven types of investors in India to know which one matches you:
- Savers : In India, most of the investors fall under this category because of the behavior of staying away from risks. They solely invest their money in the instruments which yield fixed amount of interest while facing zero risks. These investors are happy with what they are getting and never try to debut in the equity market because of the high-risk factors.
- Regular Investors : They are rarely found because of the nature of their investment. They are targeted toward achieving the long-term objective while investing more in equities. They invest their capital in different instruments which generate high growth over a longer period of time. They buy sip investments when having a surplus, and tend to withdraw whenever in need of cash. They do not bother about the short-term volatility as they know it well that in the long run, the returns would be highly appreciable.
- Window Shoppers : They are the kind of investors who get first information about any investment, but they do not participate in the market. They are just like a window shopper who roams in the entire mall but will never buy anything. They float information and opinion about various investments, but they do not risk their own money. They are the first ones who talk about the strategies but never dare to apply them.
- Seasonal Traders : These investors have vast experience but have earned very little returns on their investments. For example, the employees of the trading house live in the fantasy that all the first news about the market trends comes to them, and they keep waiting with the belief that they will hit a great shot at the right time. They are the irregular type of investors and spend more time in scheduling their investments.
- Scapegoats : These investors are the ones who do not invest on their own, but are pushed into investments. They are the friends of any financial product seller and invest through them only. They have the least knowledge about investments and park their money only through the agent.
- Day Dreamers : They are distinct from others and have an interesting character. They are already successful in their businesses and think that they can achieve success in any field. When it comes to investment, they feel that winning the game in trading market is also same as running the business.
- Fresh Investors : They never panic during changing market scenarios and hold a strong belief in their strategies. They are confident and are ready to listen to others’ viewpoints. They often take their own decisions and stick to it. They always invest in a disciplined manner and never run to chase the schemes for which they are in doubt.
You must know the category of investors in which you fall and try to overcome the shortcomings for making better decisions. The best category is of ‘Fresh Investors,' while ‘Savers’ and ‘Regular Investors' come next in line. You must evaluate the investment styles of all of these categories and determine your style to make the required changes so as to experience safe and prosperous investment rides. You can also choose the schemes at MySIPonline, which are best rated and recommended by various rating agencies.
