When it comes to investing, personality matters. That’s one of several things the BC Securities Commission learned when they conducted the National Smarter Investor Study to assess what Canadians know, feel, and do when it comes to investing.
The study reveals some interesting details about B.C. investors. In particular, which cities have the most (and least) residents from the same personality type.
For example, the highest percentage of confident investors are found in the northeast Lower Mainland (including Burnaby, the Tri Cities, and Maple Ridge). On the other hand, you’re more likely to find diligent investors in the interior and the north than in Vancouver, Richmond and the North Shore.
Check out these five personality types, then take the quiz to find out yours.
Confident people are particularly high on extroversion and open to experience. This personality profile is often referred to as “resilient.” They are the most likely to invest, most likely to work with an advisor, and exhibit the most “good investor behavior.”
Diligent personality people are similar to confident investors but are introverted. Diligent people are more likely to work with advisors. They also read their statements thoroughly, but may not ask about compensation or do a background check.
Reserved people are characterized by being introverted. They are less open to experience and less likely than confident, diligent, and impulsive people to work with an advisor. They’re also less likely to consult third parties, conduct background checks, or know how their advisor is paid.
Impulsive people are high on agreeableness and, along with tumultuous people, are least likely to be do-it-yourself investors. Impulsive people who work with advisors are least likely to read their statements. They typically don’t wait before deciding to invest and don’t conduct extensive research.
Tumultuous personality people are the least likely to invest in the first place, but when they do, they would be unlikely to wait before deciding to invest, to ask questions about suitability, or refer to a plan. They are the most likely of all the personality types to be victims of fraud.
More than 8,400 people have participated since the quiz launched in November. Of those who have taken the online quiz so far, 40% are confident, 19% are diligent, 15% are impulsive, 14% are tumultuous and 12% are reserved.
Curious to know what your investor personality type is? All it takes is 10 questions. Click here to take the quiz yourself.