Investor Profile

Good Essays
Investor Profiles When it comes to investing, it is crucial to determine one’s risk tolerance, expectation for capital appreciation, income requirements, preferred portfolio volatility, time horizon, and of course, the expected overall potential return. These characteristics are generally summed together to form the investor profile of a particular investor. It will allow an individual to make clear of their goals and objectives, determine their comfort level with risks and uncertainties, as well as other valuable information necessary to make wise investment decisions in the future. There are six standardized investor profiles described in the article, “The things that keep investors smiling”. They are listed as: ‘aggressive growth…show more content…
The goal of these investors is to protect their capital; therefore there is a much lower level of capital appreciation. The time horizon of these investors is usually in a moderate time frame, ranging from three to five years. What Type of Investor Am I? I would consider myself to be categorized under the profile of a growth investor. I am a motivated individual who seizes opportunities as they present themselves. Opportunities may not always be rewarding, but I am someone who is willing to take that risk while others are in doubt. For this reason, I believe that I have a relatively high level of risk tolerance. Many would say that risk is a double edged sword, but I see risks as opportunities with very rewarding potential returns. It is true that the higher the potential return, the higher the potential loss. However, I believe that with exceptional knowledge and wise decision-making, risk can be reduced to a minimal amount - in which case, it will act to your benefit. I would not require regular income from my investments as I am more inclined to maximize my capital appreciation. I believe that the regular income would be much more rewarding if it was reinvested with a worthwhile investment strategy to induce a greater capital gain. In addition, my investment horizon would be a longer period of time, as the more risky investments may experience
Get Access