Abstract
This study reports on the continued psychometric validation of FIPI®. The framework measures four traits that characterize the cognitive, emotional, and behavioral tendencies of self-directed investors: Zeal, Inhibition, Conventionality, and Swag.
In this sample of American adults with active self-directed investment accounts, the traits showed both convergent and divergent validation with investing-related tendencies. Zeal tracked with more active trading, Inhibition with lower self-efficacy, Conventionality with ESG-related attitudes, and Swag with stronger self-reported returns and confidence.
These associations held even after controlling for demographic variables, Big Five traits, and financial literacy, supporting the use of FIPI® as an applied framework for more personalized guidance, financial inclusivity, and investor education.
Introduction
The poster frames FIPI® as a response to a real market gap: self-directed investment activity surged during the COVID-19 period, while KYC processes still focused mostly on risk tolerance and investment knowledge.
- Retail trading activity increased alongside self-directed account demand.
- Traditional onboarding tools were not designed as psychometrically valid personalization tools.
- FIPI® was developed to profile individual differences among self-directed investors.
Method
American adults with active self-directed investment accounts completed personality, financial literacy, and investor-outcome questionnaires.
- Sample: American adults, M_age = 42.19, SD = 12.42, total N = 237.
- Background measures: Big Five personality traits and financial literacy.
- Outcome measures: risk tolerance, trading frequency, financial self-efficacy, portfolio returns, use of ESG information, and ESG enthusiasm.
