Behavioural loss tolerance: Low to med.
Behavioural Loss Tolerance
Shows how much loss you can emotionally handle without making impulsive or irrational decisions.
Low
Medium
High
Your Investment Personality
The Ethical Investor
You seek to align your financial goals with personal values such as sustainability, social justice, and responsible governance. You support companies that are making a positive impact on the world and may have the tendency to grow emotionally attached to a particular stock or company. You tend to lack confidence in making your own financial decisions, often relying on external guidance or judgement. You also easily trust your financial advisor or peer's recommendations without question.
Behavioural loss tolerance: Low to med.
Behavioural Loss Tolerance
Shows how much loss you can emotionally handle without making impulsive or irrational decisions.
Low
Medium
High
Strengths
Co-operative
Works well with advisors and teams, fostering productive relationships.
Value-driven
Prioritizes Environmental, Social, and Governance (ESG) or Socially Responsible Investing (SRI) criteria, ensuring investments reflect personal ethics.
Patient
More inclined to stick to long-term plans and avoid impulsive decisions during market downturn.
Weaknesses
Passive decision-making
Relies on financial analyst's judgement and feel difficult to make personal financial decision.
Over-trusting
Trusts in advisors might increase susceptibility to poor advice or scams.
Emotional attachment
Holds losing stocks or investments due to loyalty or feelings.
Low effort control
Considers information provided by others without any critical assessment.
Low self-confidence
Underestimating own judgement, leading to over-delegation (I.e., The experts know best).
Your investment style is Socially Responsible Investing
Here are some options often associated with this investment style:
ESG Funds
Invest in companies with strong environmental, social, and governance practices for sustainable, responsible growth.
Why?
ESG Funds reflect your compassion and desire for positive impact.
Watch out for...
"Greenwashing" funds with weak ESG scores - When a company uses misleading marketing to make itself appear eco-friendly.
Ready to build your portfolio?
Check Credentials
Verify financial advisors or analysts' credibility.
Do Your Own Research
Make an effort to do own research and critical thinking after receiving a recommendation.
Automate Smart Investing
Automate investments with Dollar-Cost Averaging into low-cost ESG Funds based on your investment horizon.
The investor’s bookshelf
These are some independent resources for further learnings based on your personality.
The Four Pillars of Investing - William Bernstein
A comprehensive guide that offers valuable insights and practical strategies for building a successful investment portfolio.
The Sustainable Portfolio - Nathan Venture
Helps investors align their financial goals with Environmental, Social and Governance (ESG) to pursue long-term returns and positive global impact.
Common Sense on Mutual Funds - John Bogle
Empowering investors with timeless strategies and prompts them to reflect on broader philosophical insights and encouraging personal growth.
