Tuesday, March 1, 2011

What is your investment style?

Know what your tolerance for risk and investment style help you select investments more wisely. While there are many different types of investments can be made, there are really only three styles of specific up-front and three styles tie with your risk tolerance. The three investment styles are conservative, moderate and aggressive.

Of course, if you find that you have a low tolerance risk, investment style is probably conservative or moderate at best. Have a high tolerance for risk, it is more likely that a moderate or aggressive investor. At the same time your financial goals determine what kind of investments.

If you're going to save for retirement in the twenties, a conservative or moderate style of investing must use: but if you try to get together the money to buy a house in the next year or two you want to use an aggressive style.

Conservative investors want to keep your initial investment. In other words, if you invest $5000 you want to be sure, you will receive your initial $5000. This type of investor usually together invested stocks and bonds and short-term money market accounts.

Interest that is savings account earned is very common for conservative investors.

A moderate investor usually much invested as one will use conservative investors, but a portion of their investment funds investments for higher risk. Many moderate investors invest investment 50% of investment funds in the safe or conservative investments and the remainder in riskier investments.

An aggressive investor is willing to take risks with no other investors. Invest larger amounts of money in the prospect of higher returns - time or in a short time more risky. Aggressive investors often tied all or most of their investment funds in the stock market.

Again, determine, your financial goals and your risk appetite determine what type of investment. No matter what style of investing carefully examine such investments. Never invest without all the facts!

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