Attitude – 1 (Why & How of Investor’s Attitude)


Let’s first discuss how the attitude of a person is shaped. This is not only an important subject but also very interesting as well. I have tried to study and understand this from various authoritative sources and then I tried to correlate these theories with my personal experiences. The subject is too wide. After the basics, I would focus exclusively on Indian “Investor’s Attitude”.

In psychologyattitude is a psychological construct, a mental and emotional entity that characterizes a person. They are complex and an acquired state through experiences. It is an individual’s predisposed state of mind regarding a value and it is precipitated through a responsive expression toward a person, place, thing, or event (the attitude object) which in turn influences the individual’s thought and action.

The famous psychologist Carl Jung’s analysis and definitions, though stated long back, still appear practical and relevant. He says in simple terms that attitude is readiness of the psyche to act or react in a certain way. He has also very correctly defined some “dualities” in the one’s attitude. Such as

  1. Consciousness and unconsciousness.
  2. Extraversion and Introversion.
  3. Rational and Irrational. Rational is subdivided into thinking and feeling Irrational is subdivided into sensing and intuition.
  4. Individual and Social attitudes.

It’s important to understand the factors which lead to the formation of above attitudes.

Values: These are guiding principles in one’s life or goals that people strive to obtain.

Beliefs: These are cognitions about the world. Subjective probabilities that an object has a particular attribute or that an action will lead to a particular outcome. These can be false also.

Perceptions: Same as above.

Family: Family plays a significant role in the primary stage of attitudes held by individuals.

Society: Social culture, tradition, religion, language, customs etc influence a person’s attitude.

Financial Status: Salary, status, nature of work, work environment etc affect a person’s attitude.

Components of attitude. It’s important to note that the following components too influence one’s attitude. It is called the ABC Model.

Affective component: These are feelings or emotions linked to an attitude object. For example, many people are afraid/scared of spiders. This negative affective response is likely to cause a negative attitude towards spiders.

Behavioral component: These refer to past behaviors or experiences regarding an attitude object. People infer their attitudes from their previous actions.

Cognitive component: These are the beliefs, thoughts and attributes that one would associate with an object. Many times a person’s attitude might be based on the negative and positive attributes they associate with an object.

Additionally, there are also two measures which shape an individual’s attitude and behavior. These are:

Explicit measures: Attitudes at the conscious level those are deliberately formed and easy to self-report.

Implicit measures: Attitudes at an unconscious level those are involuntarily formed and mostly unknown to us.

Both of the above measures shape an individual’s behavior. It is generally observed that when the demands are steep and one feels stressed or distracted, the implicit attitudes are most likely to affect.


Having revised the fundamentals of the factors which shape one’s attitude; next in Attitude – 2 we will discuss how the Indian investor’s attitude is shaped. This understanding is of significant importance to guide and deal with an average Indian investor.







Yes, Poonji Nivesh (पूँजी निवेश) in India had always been a serious domestic story in every section of society. India’s growth story and specially the emerging middle class, the youth power, the start -ups, the arrival of global multinationals in almost every sector; have made Poonji Nivesh an even more critical and serious issue for the Indian citizens.

In order to encash upon and give directions to this success story, AMC’s and Financial Institutions of India and abroad have established their strong network to cater to  the various needs of society.

For control and transparency, govt agencies and financial regulators have framed a set of laws to check and balance frauds and irregularities. And  these set of laws are naturally in accordance with international laws. Timely reviews and amendments are also made whenever felt necessary.

Multiple investment options to cater to various financial needs have been introduced. This has given rise to a new breed of professionals called Financial Advisors who are qualified and licensed to provide different types of financial and investment advisory services.

As a result of above factors, the story of Poonji Nivesh in India has become not only interesting but also a bit aggressive and complicated. पूँजी निवेश करना है यह तो पता है पर कहाँ, क्यों, कितना और कैसे यह एक गंभीर विषय बन गया है। Experts के समझाने के बावजूद…बात कुछ समझ में नहीं आती!?! 😇🤔

With my past experience in marketing and my close association with leading experts of this sector, I have identified few basic, interesting and important things related with the psychology of the (Indian) investors.

These are first hand observations which I am going to share in my subsequent posts. If you’re an investor yourself then you might identify yourself with any of the groups of my analysis or if you’re a professional in the field of Financial Advisory Services then my analysis will help you to better understand your target audience.

Till then Welcome once again and thank you very much for your interest.

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