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Risk Profile: The Aggressive Investor

March 31, 2013 3:01 am
posted by James Parnwell

Risk Profile: The Aggressive Investor

Do you know the kind of investor personality you are? Knowing this will change the way you invest your money in property, and more importantly, ensure that you make more informed decisions depending on the level of comfort with risk you have. To different people, winning means different things and when it comes to investment risk profiles, there are different strategies of winning. All these are defined in different investor profiles. Here, we’ll discuss the aggressive investor in detail.
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What’s Unique in the Aggressive Investor’s Risk Profile?

The aggressive investor is that who sees value in risk. Therefore, at the very core of their investment characteristics is the ability to take and tolerate higher risks with their money but with the objective of gaining higher returns depending on the movements of the markets.

Since investors in this risk profile endeavor to outperform the markets, they end up exposed to many risks while investing in what is known to be their areas of interest, including equity investments such as mutual funds and individual stocks. While they see large short term swings in market performance as an advantage to their investment activity, they are prone to the risk of the effect of slumps in market activity. Hence, a little guidance for this risk profile, such as the one we provide, is very important for strategic choice of investments.

Although the risk profile may include people of any age, most aggressive investors are young and most of the time wants to pump large sums of money into their investment portfolios periodically over time. They do this with the aim of accumulating substantial wealth over the years of their planned investments.

The typical aggressive investor will choose investment options that are long term – 10 years at the minimum. The advantage of this trait is that a higher capital gain is always likely to be achieved because aggressive funds have larger portions that are allocated towards riskier asset classes such as equity and property.

The ability to wait for long term investments to bear fruit is known to be a trait of this risk profile, although most of the time, investors here will periodically invest when they see high risk opportunities with the hope of gaining more benefits. This is attributed to the fact that aggressive investors do not depend on their investments for immediate income because they already have an income from other sources.

Article by James Parnwell & Jess Dovane

If you would like some further information on anything related to Investment Property or Investment Finance please contact us

One of our team of experienced Investment Property coaches or Investment Finance Mortgage Brokers will be happy to reply to you with some helpful advice…

Please let me know if you have any questions.

Risk Profile: The Aggressive Investor

The journey to investment success begins with understanding yourself in terms of how much risk you are willing to take with every investment decision you make. Understanding this will improve your calculations of risk and the choice of investment you want to opt for. Your risk profile is the amount of risk you as an investor are willing to take with your money in exchange for investment returns. Let’s find out if you are a moderately aggressive investor and how you can make investment decisions that will work for your kind of profile.
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What are the Hallmarks of the Moderately Aggressive Risk Profile?

As a moderately aggressive investor, you find yourself driven by the goal of capital growth and are ready to tolerate some market fluctuations in the worth of your investment as you anticipate higher returns. A standout characteristics you possess if you fall in this risk profile is the fact that you are ready to take a little more risk than a majority of investors in the market. As a result, you also expect to earn more rewards when the markets go up just because you tolerated more risk when the markets were dipping.

The investments of moderately aggressive investors are nowhere below 5 years. They look for capital growth over a period ranging between 5 and 10 years. Therefore, anyone in this risk profile is ready to accept yearly fluctuations in the value of his or her investments with the hope that in the long run, you will end up with gains.

Contributing to the long-term investment objectives of your investment is normally the lack of dependence on investment income, which allows you the ability to set eyes to future benefits, perhaps retirement. In the long run, you expect to recoup any losses occasioned by downward market fluctuations, and close the long-term investment with significant capital growth.

Making Investment Choices

A moderately aggressive investor is someone with a good risk profile. However, they are prone to making rash decisions that can change the outlook of their portfolios. When it comes to investment, every decision has to be carefully considered because it involves risk. You can use the potential of your risk profile to major gains. Contact us today for a break-down of all the facts that you should look at before making investment decisions. We will help you avoid mistakes that can cost the capital growth of your investment.

Article by James Parnwell & Jess Dovane

If you would like some further information on anything related to Investment Property or Investment Finance please contact us

One of our team of experienced Investment Property coaches or Investment Finance Mortgage Brokers will be happy to reply to you with some helpful advice…

Please let me know if you have any questions.

Risk Profile The Moderate Investor

All investors are characterized by attitudes towards risk. When it comes to investing in property, it is important that you consider your tolerance or risk profile carefully. This will include finding out how comfortable you are with the possibility of losing money you have invested, or that your investments might have varying returns from year to year. In so doing, you will understand your personal risk tolerance which will help you make the right choice of asset allocation. Here, you will learn how the moderate investor makes his or her decisions.
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Traits of the Moderate Risk Profile

Most investors belong to this risk profile. The motivating factor for this group is the desire to invest for the long term and enjoy capital growth. If you are a moderate investor, you can tolerate some market fluctuations in the value of your investment as you anticipate a higher return. For you, it goes down well to know that you are taking some risk to get good returns.

A common factor with portfolios of moderate investors, there is less growth compared to the market’s average. Similarly, when markets slump, the portfolios experience less downward effect compared to the overall market dip.

People in this risk profile understand that they are likely to lose money they have invested if the markets go down, but they also anticipate that they will enjoy some gains when the markets go up. However, their primary goal is to invest for the long-term, at least 5 years with almost no dependency on the investments for an income.

However, that is not all about a moderate investor. Though ready to take risk, these investors aren’t comfortable enough with market risk to warrant aggressive investment of their funds. As a result of this, these investors will achieve returns slightly more than inflation and taxes.

Where to Invest?

Does this profile sound like you? Moving in appropriate time frames is important for you as a moderate investor – a risk profile much suited for investing in property. This will ensure that you maintain returns with stability for the sole reason that investments in property maintain higher allocations compared to cash and bonds.

When making your choices might prove a difficult task, we can provide expert help to ensure that you take the right path in your investments for even better returns. That includes timely decisions even when making long term investments. Contact us today and we will help you walk through the process successfully.

Article by James Parnwell & Jess Dovane

If you would like some further information on anything related to Investment Property or Investment Finance please contact us

One of our team of experienced Investment Property coaches or Investment Finance Mortgage Brokers will be happy to repl y to you with some helpful advice…

Please let me know if you have any questions.