Bailard, Biehl and Kaiser five-way model is an investor profiling model, developed by

economists An economist is a professional and practitioner in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this field there are ...

and

investment Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

/fund managers Bailard, Biehl and Kaiser, in which

investors An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital the investor usually purchases some species of property. Types of in ...

are classified into five categories: The model was proposed in their book ''Personal Money Management'' in 1986. *Individualists – They are confident and careful. They generally do not go to a consultant to manage their investments but do it by themselves. *Adventurers – Adventurers generally go for only big bets. They have the resources to do so and are willing to take risks. The investment made by this type of investors are generally focused and not diversified. *Celebrities – Celebrities are those that are swayed too much by the trend and do not have any expertise or opinion about investments. However, not having the expertise and the confidence required to manage the

portfolio Portfolio may refer to: Objects * Portfolio (briefcase), a type of briefcase Collections * Portfolio (finance), a collection of assets held by an institution or a private individual * Artist's portfolio, a sample of an artist's work or a ...

on their own, they approach investment managers frequently. *Guardians – Guardians are both anxious and careful. Lacking confidence in themselves, they approach investment counsels. They generally emphasize on safety of the capital while making the investments and a significant proportion of their investments is generally devoted to

government securities A country's gross government debt (also called public debt or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit occ ...

and guaranteed return investments. *Straight arrows – These are halfway between complete

confidence Confidence is the feeling of belief or trust that a person or thing is reliable. * * * Self-confidence is trust in oneself. Self-confidence involves a positive belief that one can generally accomplish what one wishes to do in the future. Sel ...

and

anxiety Anxiety is an emotion characterised by an unpleasant state of inner wikt:turmoil, turmoil and includes feelings of dread over Anticipation, anticipated events. Anxiety is different from fear in that fear is defined as the emotional response ...

, and extreme carefulness and impetuousness.

References

{{DEFAULTSORT:Bailard Biehl And Kaiser Five-Way Model Investment Financial risk

See also

References