What is your investment style?
To know your investment style first you have to check your tolerance level, means how much you could tolerate risk on investment?
There are three type of investment style:-
1. conservative
2. moderate
3. aggressive
From among these styles you have to choose your style on the bases of your tolerance power.
Here is a simple exercise for you, follow the instruction carefully. With the help of this exercise you could determine your tolerance power according to your style of investment.
1. Conservative style: this style is opting by that investor who has very low risk tolerance power, beginners fall in this type.
Conservative investors are afraid of losing their money and want their initial money back. Usually they invest in common stocks, short term money market account and bonds to keep safe their initial investment.
2. Moderate style: the investor who opt this style fall in the category of conservative investors. But a slight difference is that they want to take some risk to gain more out of it.
They use 50-50 technique; it means 50 in safer zone and 50 in risk prone area. Safer zone is conservative investment and risk prone area is risky investment.
3. Aggressive style: investor fall in this category are willing to take higher risk on their investment unlike other investors.
These investors believe in more risk more gain formula. They invest higher amount to earn in huge. They usually invest their money in purchasing stocks and play big game in the stock market.
Now its your turn to choose your style of investment!
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