The report also considers the different financial personality traits that exist amongst wealthy investors, and the different self-imposed rules and strategies that they put in place to deal with these traits. It shows that ‘emotional’ trading can cost investors nearly 20% in returns over a 10-year period while those who employ high strategy usage have on average 12% more wealth than those who do not use rules.
Vince Hopkins, head of Barclays Wealth in Bristol, said: "This report provides an in-depth study into the financial personalities of wealthy investors in the UK and the South West, giving us fascinating insight into their behaviour. When it comes to financial discipline, there is a desire for more control which presents an interesting challenge for the wealth management industry. Clearly, more needs to be done to help clients understand their financial personality and the benefits of using financial self-control strategies.”
Greg Davies, head of behavioural finance at Barclays Wealth, said: “You have to remember that with increased wealth comes an increased complexity of investment decisions. The key thing that investors need to consider is how these decisions might fit in with their overall investment strategy, and importantly, how they fit in with their individual requirements, both financial and emotional.”
