BANGALORE: The “Investor Profile” is a personality assessment that was created to help investors learn to recognize their natural internal characteristics that both help and hinder financial success. Your investment profile will define the type of investor you are, taking into account your age, financial circumstances, investment goals and, most importantly, how much risk you feel comfortable taking or can afford to take.

Risk is a vital element because as a rule, the more risk you can take on, the higher the potential returns you might make from your investments. These factors, together with issues such as tax and liquidity, will all help shape your investment profile. Your financial advisor can help you establish your investment profile. There are different types of investor profiles let’s have a look at some of them:

1. Conservative Investor

Capital growth is not a priority and cautious investors seek stable investments that will gradually grow in value and are not prone to high volatility. With the majority of its assets invested in bonds and cash instruments, a conservative portfolio should deliver a steady income stream and moderate capital growth.