Just as there are various investment options, there are also many different types of investors. So, which one are you? Depending on your income level, investment knowledge, and life cycle stage, you can be an aggressive investor in your 30s and a conservative investor when you’re nearing retirement. Generally though, as your knowledge about investment grows, you can move from one investing type to another.

Investment portfolios can be structured into three main asset classifications, including cash, fixed income, and growth. Below are five types of investors and their descriptions.

Very Conservative Investor

Very conservative investors are typified as those whose household income is unstable or those who have no tolerance of financial loss. Your investing experience is only around 2 years or less.

Conservative

Your household income is still somewhat insecure, but you are in better shape compared to the very conservative investor. You have a risk tolerance of about 5%, but you don’t want to risk more than that. Your investing experience is between 2-5 years.

Moderately Aggressive

Moderately aggressive investors are those whose household income is already fairly stable. You can tolerate as much as 10% decline in your investment portfolio. Your investing experience is between 6-9 years.

The Aggressive Investor

The aggressive investors are those whose household income is already secure. You can tolerate up to 15% decline on your portfolio value if you are this type of investor. Your investing experience is between 10-15 years.

Very Aggressive

Your household income is very secure, if you are a very aggressive investor. You can tolerate market fluctuations, and you have a risk tolerance of 20% or more on your portfolio value. You’ve been investing for 15 years or more if you’re this type if investor.

Tweet This Post