Risk Profile: The Moderately 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.
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
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