Investor profile
An investor profile or style defines an individual's preferences in investment decisions, for example:
- Short-term trading or long term holding
- Risk-averse or risk tolerant / seeker
- All classes of assets or just one
- Value stock, growth stocks, quality stocks, defensive or cyclical stocks...
- Big cap or small cap stocks,
- Use or not of derivatives
- Home turf or international diversification
- Hands on, or via investment funds
What determines an investor profile
The style / profile is determined byObjective traits
- Objective personal or social traits such as age, gender, income, wealth, family, tax situation, opportunities.
Subjective attitudes
Balance between risk and return
An investor's style is shaped by his or her sense of balance between risk and return. Some investors can tolerate greater risk to have greater return. Some investors want less risk and are content with a reasonable return.Areas of focus
An investor profile is shaped by the area that an investor chooses to focus on; such as:- stocks or bonds,
- technology, commodity, or real estate
- small-cap or large-cap companies