Investor profile

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An investor profile or style defines an individual's preferences in investment decisions, for example:

What determines an investor profile[edit]

The style / profile is determined by

Objective traits[edit]

  • Objective personal or social traits such as age, gender, income, wealth, family, tax situation...

Subjective attitudes[edit]

  • Subjective attitudes, linked to the temper (emotions) and the beliefs (cognition) of the investor.

Balance between risk and return[edit]

An investor's style is shaped by s/he's sense of balance between risk and return. Some investors can tolerate greater risk to have greater return. Some investors want less risk and are content with a reasonable return.

  • Generally, the investor's financial return / risk objectives, assuming they are precisely set and fully rational.

Areas of focus[edit]

An investor profile is shaped by the area that an investor chooses to focus on; such as:

  • stocks or bonds,
  • technology, commodity, or real estate
  • small-cap or large-cap companies

Investment strategies[edit]

An investor profile is also shaped by the strategy the investor uses:

Valuation methods[edit]

An investor profile is also shaped by the valuation method the investor uses:

See also[edit]

External links[edit]