Investor Categories

There are three types of Investor Categories or Investor Profiles as following.

 

  • Conservative
  • Enterprising
  • Speculative

 

Safety is extremely important to the conservative investor. His objective would be to preserve his captial and earn an income. Conservative investors do not revel in the game of playing the markets. They would normally make an investment and retain it for sometime. Investment products that are suitable for conservative investors are fixed deposit, unit trust, insurances and etc.

An enterprising investor is one who is not particularly worried on taking risks. He usually takes risks. His main aims are income and capital appreciation. Usually an enterprising investor will be fundamental investor that focus on fundamental of the company. He focuses on stability of the company financial and growth of earning power for that company. Investment products that are suitable for enterprising investors are growth stocks, high growth unit trust and etc.

Investor Profiles

Investors must know their own investor

categories or investor profiles.

The speculative investor is a gambler. He takes risks and believes in buying and selling investments in order to earn money or capital appreciation. He is usually a man who is in a hurry and attempts to make to make as much as he can in as short a time span as possible. Speculative investor are investor that can stand to invest extremely high risk products like commodities, futures, currencies exchange and etc.

It is possible to be a bit of each. One can divide one's investments into parts. One part could be used for speculative purchases - another could be used for conservative buying.