If something can be found in the financial markets, it is the variety of profiles. Find out what are the types of investors that operate on the stock market, according to their motivations, subjects, risk aversion or according to who they respond to.
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How many types of investors are there? Her CARACTERISTICS
The first thing to keep in mind is that there is no single classification of types of investors what is in the financial market. Depending on aspects such as risk aversion, the subject of the investment or the objective of the movements and strategies, you will find different profiles and all of them are part of the fabric that operates every day on the stock market.
There are different types of investors depending on a series of variables, such as risk tolerance, the type of client they work with or the objective of the strategies they implement.
If you identify with any of them, perfect your qualification It will provide you with credibility, experience and confidence in the portfolios of your clients and begin your journey through investments in the stock market.
Investments based on risk aversion
Each of the investments has its role, although in all of them a cold and analytical mind is necessary after each decision. from a profile conservative, moderate and aggressive, the index that measures these types of investors is their tolerance for losses that may occur on the stock market. We explain each one of them.
- conservative profile. Those who are moved by prudence, betting on assets with a low level of risk and fixed income. High-yield, prestigious companies or even Government Bonds are the actions that are most often used.
- moderate profile. He is a type of investor who seeks a balance between the stability provided by a fixed income and volatile assets that inject a greater flow of benefits. They move betting on mitigating risk, but allocating a portion of the actions to risky strategies.
- aggressive profile. They go for it all: they have a high tolerance for losses and focus their strategies on obtaining the highest possible return, despite the risk involved. In compensation, they usually have diversified portfolios to distribute the weight of volatility among a greater number of clients.
Types of investors: who is the subject that performs them?
Anyone could become an investor today and start their client portfolio, but the financial market is highly technical. Because of that there are two types of profiles main ones who operate on this board: those who do it on their own as retailers and those who think big. They are the following:
- private investor. A person passionate about the stock market who decides at his own risk and expense to make investments with his savings to generate his own benefits.
- institutional investor. They operate with a diversified client base, raise large amounts of capital and invest on a large scale. They can have such a presence in large companies that they can even be part of the shareholders’ meeting and direct the course of the corporation.
Investors who are committed to generating value or profitability
Investments can be used to position and demonstrate the prestige of a corporation or to generate cost effectiveness. The first are strategies that add value to the company and the second seek benefits. So:
- strategic investor that seeks to position the company by adding value, it does so by thinking in the long term and working in a market niche that it knows well.
- financial investor that looks for the benefits and profitability of the initial investment, it does so by planning the actions in the short and medium term.
To whom does the investor answer?
The client portfolio to which an investor responds determines the type of actions with which it works. They can be from small family businesses, large fortunes or venture capital. Many terms are imported from English, which gave rise to the investor profession.
- family & friends. This is a type of investor who usually does not have much experience or very little specialization and who operates with the capital of the companies of their relatives on a small scale.
- Family office. They continue to operate with family assets, but unlike the former, they work with large fortunes so that the successor lines can enjoy this wealth through the benefits generated by the investments.
- business angels. Unlike the former, they are highly qualified profiles and they bet high. Their knowledge supports them to bet on large business projects with ambition and the desire to see their profits grow exponentially.
- Risk capital. They are all those types of investors who enter companies, which are usually newly created or startups, to increase the value of the company. Once they collect the benefits obtained from these actions, they retire from the company. Within this group, they operate in different sectors, one of the best known being technology, which gives rise to successful businesses.
Dedicate yourself to the world of investments!
The financial market is a sophisticated field, in which, behind every decision and movement, there is a hidden high volume of knowledge which is essential to hit the nail on the head in the world of investments.
Quality training will cover every step you take in your journey through the financial market. With the Stock Market and Investment Course You will become a qualified profile to play in the league with all types of investors and amass benefits both personally and for your client portfolio. ohfill the form with your data so that we can tell you all the details of the training!