New Delhi, Feb. 5 -- Psychology has always intrigued mankind, not only because of its complexity but also its effect on our daily lives and the world as a whole. It affects not only our relationships with family and friends but our relationship with money as well. Recently, a lot of research has been conducted about human beings' attitude towards money in general and investing in particular. This subject, at the intersection of investments and human psychology, is known as behavioral finance.

But long before behavioural finance became a fancy term in the worlds of academia and finance, economists and fund managers Bailard, Biehl and Kaiser proposed their own 'five-way model' in 1986, defining distinct investor profiles based on their lev...