What is Investor's life cycle?

Answer 1

The investor's life cycle refers to the stages an individual typically goes through in their investment journey, influenced by factors such as age, financial goals, and risk tolerance. It generally includes stages such as accumulation, where individuals save and invest for future goals; consolidation, where they focus on managing and optimizing their assets; and distribution, where they draw on their investments for retirement or other needs. Each stage requires different strategies and asset allocations to align with changing financial objectives and life circumstances. Understanding this cycle helps investors make informed decisions at each phase of their financial life.