TYPES OF INVESTORS

Any person or firm or entity that invests its capital in any source with the expectation of receiving returns in the future is known as an investor. Investment activities are rising at an increasing rate all over the world. As people are becoming aware of their future needs, they are resorting to investing more and more capital for future returns. There are various types of investors, some are risk takers and others are risk averse. Investors all over the world think from different perspectives before investing. So, in this article, we would know about the types of investors that exist over the world.

Risk Takers:

These are the investors who are bold and fearless. They resort to taking risks and are more confident in what they are investing in. They work on the principle of “The higher risk, the higher will be the”. They believe that success requires creative and strategic pursuits. These investors believe in investing for the long term.

Risk Averse:

These investors do not like to take any type of risk and invest in a source only if they are sure that they would get returns in the future. They do not invest for a long period and thus do not get a higher amount of returns. These people usually have the fear of failure. They do not believe in volatile investment, rather they believe in conservative investment which means growing steadily. 

Conscious Investors: 

This is the most risk-averse category. They usually think a lot before investing and try to think about every possible factor. These are investors who are more towards safe-guarding their investors and do not want any kind of losses. These people are really afraid of making mistakes and thus, take all the decisions consciously. 

Emotional Investors:

These are the investors who think by their hearts, not by their heads. They simply invest because of their sentiments and do not look into the profit or loss that they may suffer. They may invest in a company because they like that company or in a property because they have emotional attachments to it.

Technical Investors:

Have you ever seen people always looking at graphs? These types of people are technical investors. These investors only invest after properly studying the trends and the market and don’t just go by the market flow.  They believe that researching and analyzing would give them an edge over the others. 

Busy Investors:

People who buy and sell shares frequently, usually fall in this category. These people follow the ups and down of the market and invest accordingly. They do not settle on a particular source on investment and believe in taking chance on market volatility. 

Casual Investors:

These are the investors who are opposite to the busy investors. They have a casual approach towards investments and only believe in investing and then don’t take care of them. These are passive investors who believe their financial advisors.