Which type of investor are you?

Each person is unique – and yet we can identify repetitive patterns of behaviour.
The criteria are:

  • Venturesomeness
  • Profit orientation
  • Relaxed approach
  • Caution

The venturesome investor

  • Makes speculative investments (prefers high risk/high profits [secondary issues, options, junk bonds]).
  • Often neglects to check his investments.

The profit oriented investor

  • Has the courage to take risks.
  • Precisely controls potential risks.
  • Self-confident when making investment decisions.
  • Chooses opportunities with good prospects [shares/equity funds].
  • Reacts to a decline in price with composure.

According to information from stock market circles the profit oriented investor achieves the best investment results in the long term.

The cautious investor

  • His investment behaviour is characterised by low readiness to take risks, regular controls and self dependent action.
  • Safety is the highest priority for him; he selects his types of investment accordingly [fixed deposits, loans to creditworthy debtors, possibly blue-chip shares]

The risk averse investor

  • He is in favour of protecting his investments and against taking any risk.
  • To avoid unpredictable situations he prefers safe investments [fixed deposits and loans].

The relaxed investor

  • Generally takes low risks, apart from sporadic exceptions, and only occasionally checks his investments.
  • His investment instruments are standard securities.

He resolves the conflicts caused by his intermittent quest for profit and laxity in controlling his investments by taking well thought out decisions.

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