Investor profiles: which one are you?
- February 15, 2020
- Posted by: WAS Insurance
- Category: Economics, Finance & accounting, Investment
Each investor has its own way to act in business. How do you discover your profile? Well, it is by the capacity to deal with risk in order to obtain a higher return. There are three basic investor profiles: the Conservative, the Moderate, and the Aggressive.
Let’s understand a little bit about each one:
If you are starting in investment business, this profile might fit you pretty well. That’s because the conservative priorioritizes security and liquidity much more than profitability.
Besides that, the conservative investor is not prepared for higher-risk investments. It’s common this investor choose applications without much volatility and while its money rest there, he or she can monitor the money.
In the case of riskier applications, the conservative profile prefers immediate liquidity, that’s why the choose of a short to medium term investment ranging from 0- 5 years becomes the best alternative.
As the name suggests, this investor is between Conservative and Aggressive profile. This investor has a great tolerance of risks and has the courage to give up a little more on liquidity and security to obtain the desired returns.
This profile is not so aggressive in investments, so he or she look for a medium to long term investment from 5 to 10 years. The portfolio investment can has 60–65% applied to Fixed Income and the rest in Variable Income and Funds.
The main factor for an agressive investor is the profitability, for that, this profile has great tolerance of risks. This investor understands that higher profits are consequence of a long run investment, so is fundamental to be prepared for losses.
This profile is more flexible than the Moderate or the Conservative and look for a long term investments of 10+ years.
To understand your profile and how to use it to make the best investments, count on WAS Insurance. Our specialists analyze the profile of your investment and outline the best strategy for you.