What type of an investor are you?

While I was going through a book on Portfolio Management, I came across this interesting model which classifies investors on the basis of their level of confidence and the method of action. According to the Bielard, Biehl and Kaiser Five-Way model, there are 5 categories of investors.

1. Individualists: These are the confident and carefultype. They generally do not go to a consultant to manage their investments but do it by themselves, if they find enough time. But due the rapid changes taking place, they may also be eventually compelled to seek help from investmentcounsels.

2. Adventurers: Adventurers go for only big bets. Theyhave the resources to do so and are willing to take risks. The investments made by this type of investors are generally focused and not diversified. Since they are confident of what they do, they also don't require help.

3. Celebrities: Celebrities are those which go with theflow of the trend. They go for what is popular at that point of time. They do not have any expertise or opinion about investments. They are always occupied with the thought of being left out when everyone else is making profits. They usually lack the expertise and the confidence which makes them approach investment managers frequently for help and expect them to invest in what is popular without realizing that what is popular now has already realized its potential and does not offer scope for substantial profits in the future.

4. Guardians: Guardians are both anxious and careful.Since they lack confidence, they approach investment counsels. They generally emphasize on safety of the capital while making investments and a significant proportion of their investments is generally devoted to government securities and guaranted return investments. They choose their investment advisor with great care and stay with them for the rest of their lives.

5. Straight Arrows: These are halfway between completeconfidence and anxiety, and extreme carefulness and impetuousness. They can be aptly described as the average investors.