Saturday, December 17, 2011

Types of Investors

Try to Know What Kind of Investor Are You?

Investor is an individual who commits money to investment products in hoping to make a profit/return from it. Generally, the primary concern of an investor is to minimize risk while maximizing return.

Investors are classified as follows:

a) A Conservative Investor safeguard capital to earn an income. They will not play in the market. They will invest and retain it for some time. He is one who doesn't want to
take risk but like his investment to grow. Typical Investments done by Conservative Investors are Debentures, Corporate bonds, Certain Insurance Products, Government Securities.

b) A Speculative Investor is a gambler. He is naturally a high risk taker and believes in buying and selling securities in order to earn money or capital appreciation. He very often makes attempts to earn more. He is the main driver/force of price changes in the market. He will be having willingness to take big losses if the need arises. Typical Investments done by Speculative Investors are Options trading, Futures, Exotics.

c) An Enterprising Investor is one who is not particularly worried in taking risks. He usually takes risks. His main aims are income and capital appreciation. He has the potential to outperform the market. Typical Investments done by Entrepreneurial Investors are Property, Growth Shares, Investment Linked Trusts (with growth emphasis), International Investments.

0 comments:

Post a Comment