Godmind Knowledge House
Investment Styles !
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Everybody has a personal style. Some people are extroverts, others introverts. Some people are restrained, while others are flamboyant. The investment styles of people are also diverse accordingly. Investors have their own investing styles: Some will like to take risk by going all out for equity, willing to invest large amounts of money on highly speculative investments. Some investors are happier with conservative style. They invest in debt or money market instruments even if it means that the actual buying power of their money is slowly eroding away due to inflation. investors usually fall somewhere in between these extremes, and are willing to assume some risk, with the expectation that they’ll be rewarded with higher returns. Investment style can be termed as the amount of risk you can take. |
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There are various factors which are responsible for shaping your investment style: your age, personality, personal experience, and financial circumstances to name a few. For instance, if you’re approaching retirement, have burdensome financial responsibilities, or you’ve lived through major economic upheaval, such as a massive recession or currency devaluation, chances are you may be a more risk-averse, or conservative, investor. On the other hand, if you’re young, earning a high income, have few financial responsibilities, and have seen little in the way of economic hardship, you might be inclined to take more risk. While there are as many investing styles as there are investors, most people fall more or less into one of three broad categories: conservative, moderate, aggressive. The most important part that the Godmind advisor will play in assisting you is to help you in understanding yourself as an investor, treat yourself as an investor andgive insight on investor behavior and factors influencing. |