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Types Of Financial Investors: Which One Are You?

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People want to see their money grow, so they look for investment opportunities in which they can put their money.

However, not all investments are a sure thing. All investments are a risk – a gamble, and can produce either a profit or a loss. So people shouldn’t go into investing blindly. It’s essential to reach out to local financial experts, as they can give you good advice, so if you’re from Kent or thereabouts, you can find people who can provide sound independent financial advice in Kent to suit your particular needs. They’ll assess your risk tolerance and guide you to the most suitable investment instrumentalities.

There are several opportunities out there that an investor can plunge their hard-earned cash into, but there’s always inherent risk attributed to each type. Of course, not all investors would like to take the risk, so it’s better to know what kind of investor you are before choosing which investments to take. Your risk tolerance will play a central part in determining which investments you should choose.

This article deals with the different types of investors and their qualities, and we’ll also tackle which kinds of investments would suit them best. So, read on, and find out which investor type you are before you take the plunge. 

Risk mitigator

A risk mitigator is someone who’s not averse to doing the necessary research and isn’t easily spooked by market fluctuations. They’ll make investments in opportunities that offer a significant return for their money. They also understand the need to diversify their portfolio continuously. 

Risk mitigators will put their money in low-risk investments and will always watch closely how the market performs. 

Risk avoider

An investor who’s afraid of losing their hard-earned cash is a risk avoider. They don’t want to take the risk, and with that, they settle for instrumentalities that offer guaranteed returns, even if they earn less money in the process. As long as they receive their just dividends, they’re happy and will most likely plunge their profits back into the same investment, just because they know they can earn more.

Mostly, risk avoiders will settle for savings accounts or saving accounts which promise a steady percentage. 

Risk embracer

A person who embraces risks is aggressive with their investments. However, they’re not the ones who’ll jump on something without consulting the trends in the market. Risk embracers love to bet on emerging markets, but only after they’ve done their due diligence. 

They’re the ones who love browsing the financial markets and unearthing the diamond in the rough. They know when to let go of their investments and when to stay. As a result, they’re not easily spooked by sudden market changes and know that there will be corresponding corrections that they can capitalise on with their knowledge. Risk embracers love to dabble in areas such as equities. 

Risk manager

A risk manager is someone who sees opportunities in the market. They’ll make the required research and will dabble in risky investments if it promises a significant return. However, they also know which opportunities provide the best return regardless of market volatility, and they’ll usually invest in those for the security it provides. 

Takeaways

Each investor is different, so they must seek guidance from financial experts. While there’s an inherent risk in every investment, there’s always a chance to strike it rich. So, do your due diligence before plunging your savings into any investment. 

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