DISC Profile for Investing
Type D investors like to take control of investments, thus may prefer stock investing to fund investing. As they are impatient and result-oriented, they tend to favor investment products which can generate short term returns. Given their confidence (or over-confidence), they don't easily listen to others' advice.
Type I investors are generally talkative and willing to share with others their investment interests and experiences. They like to study market trend and collect hot tips on stocks to avoid losing profit-making opportunities. As a result, they tend to switch between investments frequently.
Type S investors are risk adverse, favoring investments with steady returns and regular investment plans. They usually hesitate when making investment decisions and thus may lose some good opportunities. They tend to follow the majority and listen to experts' advice.
Type C investors are typically supporter of value investing. They like to gather adequate information and do their homework before making independent investment decisions.
If you are a salesman, how do you think about these 4 types of investors?
Obviously Types I & S investors create a higher mis-selling risk because they are vulnerable to advice. But Type I are even riskier as they make decisions quickly without doing much homework and so more likely blame you for mis-advising.
On the other hand, Types D & C investors are more autonomous. They seldom take advice, so your mis-selling risk is lower. But they are more concerned for the accuracy of product information provided by you. As they are less sensitive to people relationship, they won't hesitate to make a formal complaint against your mistakes.
If you make use of DISC Profile, you can manage the client relationship and the mis-selling risk better.
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