Investors told to understand what kind of decision makers they are

With an increasing number of investors looking to build up a portfolio as an alternative to a pension, it is becoming important that they know what kind of decision makers they are.

That is according to a financial expert, who says that people do not always make the most rational, cold and calculated decisions when it comes to investing in funds, for example.

Victor Ricciardi, assistant professor of financial management at Goucher College in Baltimore, US, told news provider Bankrate that if you give an investor three portfolio options, they will sometimes pick the one that satisfies them most rather than the one offering the highest returns and lowest risk.

With social investing becoming much more prominent as a result of the recession and the increased importance placed on social issues, this is even more the case now than it was in the past.

Professor Ricciardi was quoted as saying: "Understanding what type of decision maker you are can help you develop a non-emotional strategy."

To this end, the act of investing does not need to be overly burdened by maths and numbers, according to the news provider, which suggests that numerical facts will always relate to events that have already occurred, while it is the investor's job to predict how these events will unfold in the future.

If you would like to discuss how we can assist you further please contact us on: Tel: +44 (0)20 32077400 or email our team of advisers.ADNFCR-2318-ID-801284954-ADNFCR