The 3 Basic Risk Profiles That Every Novice Investor Must Know
Saving for the future is always scary, but never impossible. One thousand pesos—that, and the right opportunity, is really all you need. Rather than losing that thousand to flash sales, spending sprees, or impromptu nights out, put it towards a good investment.
When your money is sitting in your bank or wallet, it's easier to part with at an impulse. But there are a lot of ways to grow it through an investment company. But first, understand what kind of investor you are. Here are three basic investor profiles to understand before getting into things.
The Conservative Investor
This is where you fall if you have no tolerance for losses and risks because you want to protect your investment. You might be prioritizing short-term investments, seeing that you may need to spend within the next three years. This can be achieved by investing in time deposits, government or corporate bonds.
The Moderate Investor
If you fall under this profile, your tolerance for risk is slightly higher than that of a conservative investor but not too aggressive. You want more stable returns while willing to give up a little liquidity and security to achieve your investment goals. This can be achieved through medium to long-term investments that last you three to five years. Such can be done by investing in balanced funds or having a good mix of bonds and stocks.
The Aggressive Investor
This is the riskiest investor’s profile, where investors prioritize gains over preserving the initial investment. Falling within this profile means that your tolerance for risk is high and you’re willing to endure more loss than the previous profiles. You can give up on immediate liquidity for higher returns, and more profits will come to you in the long-run. Your investments would be mostly long-term, five or more years, and this can be done by investing in equities.
Now that you’ve identified which investor profile suits you fall under, invest with a firm that can help you #TakeOnTomorrow and achieve the financial growth you deserve.
ATRAM is a financial services group focused on asset management and wealth management. With ATRAM, you can have access to tailored solutions help you attain your investment goals. To know more about how ATRAM can help you #TakeOnTomorrow, visit ATRAM's official website and their social media pages.