Compared to investors in Hong Kong and Taiwan, counterparts in Singapore have been found to value financial comfort, confidence and risk tolerance, and thus they are least likely to be impulsive with their investments.
This finding came from a study, The Standard Chartered Investor Personality Study 2020 published on Thursday (10 April) that was conducted by Standard Chartered Bank. In the study, the behaviour of investors in Singapore, Hong Kong and Taiwan are compared across three categories of investors, namely (1) comfortable, (2) conservative, and (3) enthusiastic.
Based on the finding, of the market total, “comfortable” investors make up of 47 per cent of investors in Singapore. These investors have a high desire to leave a positive legacy, have more investing experience, and are more likely to be male.
The survey stated that “comfortable” investors are likely to make relatively more reasonable decisions and stay relatively calm during chaotic times.
On the other hand, the highest concentration of “enthusiastic” investors is in Hong Kong. These investors are relatively speculative, impulsive and believe in luck, study reported.
Also, the study noted that investors in Taiwan identify more as “conservative” investors has relatively lower risk tolerance and who are more likely to be affluent investors as opposed to high net worth investors.
The study also found that most investors in Asia “stand out” in their love for speculative investments. Instead of enjoying future returns, some enjoy investment risk for its own sake. “This is in stark contrast to Europe, where investors exhibit consistently low speculation,” the survey stated.
“Our clients in Singapore have been measured in their investment approach, especially during these volatile times,” as remarked by Standard Chartered Private Bank Head of Wealth Management, Asean and South Asia, Sumeet Bhambri.
“While some have expressed concern about their investments, we have also seen a steady increase in investment activity, with the valuations of several risk assets turning more attractive,” Mr Bhambri added.
The aim of the study was to assist private bankers in making recommendations to clients. The survey studied 1,200 investors based in Hong Kong, Singapore and Taiwan. It was conducted in partnership with Oxford Risk, who is a behavioural finance specialist.