You have just been employed by an Irish wealth management firm on their private clients division.
You are familiar with Michael Pompian’s book ‘Behavioural Finance and your Portfolio’ which has described the 4 BITs – Preservers, Followers, Independents, and Accumulators. You mention to your supervisor that understanding an investor’s behavioural biases can help financial advisors and planners tailor their advice to meet the client’s needs and help them make better investment decisions.
Your supervisor then asks you to write a detailed brief to assist the firm profile their clients:

Explain the concept of Behavioural Investor Type (BIT) and the steps involved to determine a client’s BIT. (400 – 500 words) 

Answer rating: 100% (QA)

Title Understanding Behavioural Investor Types BITs to Tailor Financial Advice Introduction to Behavioural Investor Types BITs Behavioural Investor Types BITs are a classification system developed to ... View the full answer