An investor profile or style defines an individual's preferences in investment decisions, for example:
- Short term trading (active management) or long term holding (buy and hold)
- Risk averse or risk tolerant / seeker
- All classes of assets or just one (stocks for example)
- 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
- and so on.
What determine an investor profile
The style / profile is determined by
- Objective personal or social traits such as age, gender, income, wealth, family, tax situation...
- Subjective attitudes, linked to the temper (emotions) and the beliefs (cognition) of the investor.
- Generally, the investor's financial return / risk objectives, assuming they are precisely set and fully rational.
See also
- Value investing
- Index investing
- Growth investing
- Quality investing
- Socially responsible investing
- Ethical investing
- Appreciation
- Capital accumulation
- Financial economics
- Investor relations
- Return on investment
- Saving
- Speculation
- Stock investor
- Stock profile
- Styles of investment strategy
- Global assets under management
External links
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