Categorisation of Investors

CATEGORISATION OF INVESTORS
We need to define an investor clearly before we discuss about their psychology.
As we all know that a person is called an investor when he/she is prepared to invest. This investment could be in many forms but here we are talking about financial investments.

Now, making financial investments in any form is an integral part of our social and cultural set up. ‘बचत करना’ हमारे समाज और परिवार का एक मूल मंत्र है। And this mantra is prevalent in every section of society.

How do we define and differentiate between these sections of society?
In the Indian context, social differentiation on financial standards is broadly made as below:

1. Rich & Famous!
2. Rich
3. Upper Middle Class
4. Middle Middle Class
5. Lower Middle Class
6. Below Poverty Line (BPL)

There is an interesting observation from the above segmentation. At present, there is a big chunk of population in the middle class segment. Earlier we had mainly Rich, Middle Class and Poor. But growth and development coupled with young and middle aged population divided the ‘middle class’ into three sections as above.

 

So, now these three sections of middle class represent India’s true face. In real terms, this collective group of middle class is referred as the TARGET AUDIENCE.

 

It is also interesting to note that by making strategic and tactical efforts, many in the segment of ‘upper class’ have risen up further to form a group of their own as ‘rich’, just below the group of the ‘rich & famous’.

 

Similarly in the poor section (BPL), with efforts many have risen up to qualify in the ‘lower middle class’ category.

 

After understanding the above social segmentation we can make a very interesting observation. That the middle class has swelled up because of their age, their ambitions and the abundance of the growing opportunities. युवा पीढ़ी की बढ़ती संख्या, उनका जोश और जुनून एवं नए अवसरों कि उपलब्धता। इन तीनों कारणों से देश का मध्यम वर्ग आज नए शिखर पर पहुँच रहा है।

 

When we observe this section of society from a different window and try to learn about their attitude towards life, we find that they have become self-centered (not selfish!), extremely focused and restless about increasing their income. This attitude and mental state is justifiably and boldly acknowledged by this group as “passion”. It’s a new kind of, we can say, intoxication!!

 

Good…in a way because materialistic gains and progress can be felt and physically seen in our society. Along with this, the work related and job related knowledge base has also increased manifolds. Today the ‘progressive ‘ middle class is more aware.

 

But these ‘workaholics’ have also developed certain inherent weaknesses. मध्यम वर्ग का यह जुनून उनमें कुछ कमियों को भी पैदा कर रही है।

 

Besides calling this group as ‘passionate’ and ‘workaholics’, I give them another attribute, I also call them ‘pace-setters’! And this quality is the result of computerisation. This is the new benchmark.

After discussing about the socio-economic structure of the country, in my next posting, I’ll discuss few very interesting and factual situations which will help us to understand the causes giving rise to the attitudes of these investors.

 

Till then, please ask questions if you have any. Your affirmation to what I have tried to explain will also encourage me.

 

Thank you.