Individual Investors' Needs and the Investment Professional: Lessons from Marketing
Journal of Investment Consulting, Vol. 8, No. 2, pp. 80-91, 2007
16 Pages Posted: 25 Oct 2006 Last revised: 26 Aug 2011
Date Written: February 9, 2011
The behavioral finance literature argued that investors may care about more than risk and returns. Investing may offer value-expressive benefits like status and social responsibility besides utilitarian benefits like low risk in combination with high returns. Tastes differ and different investors like stocks for different reasons as they try to satisfy different needs with their investments. We have performed an empirical study on the different needs investors aim to satisfy by investing. Our investment survey made a fine-grained distinction between these different needs and showed important differences for male and female, old and young investors, and investors with a high level of investment-related knowledge and experience and investors with a low level of investment-related knowledge and experience.
Keywords: behavioral finance, investors' needs, investment consultants, investment professionals, marketing
JEL Classification: A1, D81, G1
Suggested Citation: Suggested Citation