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.
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.
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