 |
| Source |
“Investor type” is a popular subject in the world of investment. It is rightly so because without defining what your investor type is, you just might be making a very big mistake while investing.
Thankfully, we are here to help you
discover what your investor type is. What should you consider to know your investor
type? Read this article.
What Is Your Investor Type?
While there are so many available investor types, there are three major types and they are as follows:
- Passive
- Active
- Semi-Passive
Let us look at them individually, shall we?
Passive Investor (Conservatives)
Passive investors are investors who aim to
preserve their wealth and minimize risks. While they’d appreciate extra returns
from their investment, passive investors truly aim to minimize risk. Therefore,
wanting extra (or more) returns is a secondary goal.
Ask yourself: when choosing what to invest
in, which do you think of first between what you will gain and what you will
lose? If you care a lot about what you can lose and how to minimize or
eliminate your loss, you are most likely a passive investor.
Passive investors also do not invest as
regularly as the others. They are busy elsewhere and would even appreciate it
if someone watches their portfolio on their behalf.
Active Investor (Aggressive)
You can say that active investors are the opposite
of their passive counterparts. These investors care more about the returns than
risks. Therefore, when they are choosing an asset to invest in, the
availability or chance of high returns outweighs the chance of high risk.
What it means is that active investors are
willing to go for risky assets to maximize their returns. These are mostly
assets that a passive investor will not go for.
If you prefer returns as opposed to risks,
you just might be an active investor.
Semi-Passive Investor (Moderates)
Semi-passive investors are somewhere
between active and passive investors. These investors are not as conservative
as passive investors to focus completely on risk prevention. They are also not
as aggressive as active investors to focus completely on return maximization.
If you cannot call yourself a passive or
active investor, go for the semi-passive investor.
Other Investor Types
Some other investor types are:
- Growth investor
- Dividend investor
- Enterprise investor
- Value investor
However, note that the different investor
types can be grouped according to their classes.
The ones we discussed earlier (passive,
active, and semi-passive) and grouped according to how often you as an investor
monitor your portfolio. Growth, dividend, and enterprise investor types are
grouped according to the type of assets you want to purchase.
This means that you can be one or different
types of investors. Awesome, right?
Conclusion
Surely, you can be multiple investor types
at once. The Assessworth platform gives you the chance to become as many
investors as you wish and see insights peculiar to your investor type. Awesome,
right? It’s time to become intentional in your investment journey.
