What type of investor am I?
The different attitudes people have towards investing and their tolerance towards the associated risks can broadly be divided into three categories:
Most people will fit into one of these categories.
The profile which best suits you will be governed by a number of factors including:
- how long you want to invest
- your comfort level with the sometimes volatile financial markets, and
- how much you will rely on the profits from your investments.
Knowing what sort of investor you are before you invest, will go a long way to help you reach your financial goals in the most comfortable and effective manner.
The aggressive investor
The aggressive investor generally:- has a good understanding of financial markets
- is comfortable with taking risks with their investments
- is not concerned about short-term volatility (fluctuation in returns), and
- tends to be younger and/or invests for the longer-term (5+ years).
The moderate investor
The moderate investor generally:- has a reasonable understanding of financial markets
- seeks a broad, diverse investment portfolio
- prefers to avoid volatility but can accept moderate risk
- seeks both income and capital growth (increase in their initial investment over time), and
- invests for the medium to long term.
The conservative investor
The conservative investor generally:- is uncomfortable with market volatility
- requires regular income with limited capital growth
- seeks to protect their investment value from the effects of inflation
- has basic investment knowledge, and
- has a shorter investment horizon.
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As at 30th March 2011, AXA Asia Pacific Holdings Limited and all of its Australian and New Zealand subsidiaries ceased to be members of the Global AXA Group and became members of the AMP Group.
