Last Updated on Monday, 8 July, 2019 at 11:35 am by Christian Keszthelyi
The profile of a typical investor in Malta was discussed during a seminar organised for Bank of Valletta’s (BOV) financial advisors, delivered by Antonietta Bonello, author of a publication based on the statistical data from 370 responses to a questionnaire directed at active Maltese investors, according to a press release published by BOV.
Ms Bonello’s research sheds light on the major characteristics of the local financial investors who trade on the Malta Stock Exchange (MSE), delving into variables affecting the investor’s trading decisions. The explored key areas included investor expectations, returns of investment, risk and loss aversions, disposition effect, financial literacy, and overconfidence.
In addition, the study analysed the influence of financial advisors on the investor’s risk appetite. In fact, Ms Bonello substantiated her findings through interviews with 29 financial advisors operating in different localities around Malta and Gozo to corroborate her research findings, the press statement says.
Furthermore, the Executive Wealth Management Mark Agius emphasised the importance of determining the profile of the investor. “These have to go hand in hand with well-managed and diversified assets,” added Mr Agius.
“Diversification across equities, bonds and money-market instruments helps mitigate any negative economic effects and ensure the long-term viability of your assets,” he added,
“The profile of an investor is the sum of their values, lifestyle, financial resources, timeframes and tolerance to risk. We have full confidence that our financial advisors have the skills and tools to determine the investor’s profile and tailor a specific portfolio to satisfy these criteria and achieve the customer’s goals,” concluded BOV Director Paul V Azzopardi.