types of investors explained with pros and cons

Types of investors explained with pros and cons

In this article I will be explaining the types of investors,what is their approach,mindset,pros,cons and etc. It will help ytypes of investorsou to find that in which investor’s category you falls and what you have to do for increasing your efficiency in end results. so just go through this full article deeply it will really help you in your financial understandings. so lets begin

There are lots of types of investors in according to different perceptions but here we will discuss about some of the common types of investors.

1- One who follows some person

This is the very common category as in this type people used to follow someone’s advice or invest according to other person who can be their guardians,relatives,friends,spouses and etc. In my perception this not the right way of investing or in simple words it is very risky because here you are investing according to other person. Investing is not something or meant only for gaining profits but is related to mindset,approach,risk taking capability and what are your goal targets. So these all factors are different for different persons. Your risk taking capacity and your advisor risk taking capacity is different as well as the goal targets so it is very risky to invest according to other persons. don’t just blindly follow someone try to acquire more information and knowledge before making any investment.

2- Trading professional

This is a category in which professional traders fall like who used to invest in stock markets. They gain profits by the ups and downs of markets. Before investing they used to analyize the stock and then invest according to their risk capacity and with their approach and experience. They are very good investors but it is good to invest good amount of money in mutual funds through fund managers so that they can get some good profits by the expertise of top class fund managers. it will help in their adversity because everything in this world is uncertain so you should have a backup plan or a plan B.

3- Innovative investors

These are the investors who are ready to explore new things and innovative ways to increase their inventory and profits. These people generally have risk taking capacity more incomparison to conventional investors. Like somepeople nowadays are investing and trading in cryptocurrencies which is a very risky business as this commodity is very volatile. A word of advice is that they have to be more clear on their risk takinng capability and be full aware about that because new things generally a bit risky also. Also try to take calulated risks with some professional advice if you are investing a hefty amount.

4- Conventional investors

These investors have a conventional and conservative type of nature means they believe in their old and conventional methods. generally their risk taking capability is very low this doesn’t mean that they are bad but their mindset preference is safest mode of investment. They believe in investing in insurance policy,term insurance etc. generally these ways of investment gives less returns than others but they are more safer way also. term insurance is cheap to buy and also this provides financial security in adverse conditions. It is a good and safest way of investment.

5- One who invest in International markets

In this category people used to invest in international markets like purchasing a home in Dubai,USA,UK etc. Pros of this category is that you divide your risk into many countries so risk are bit lower but a piece of advice is that you have to aware of geopolitical tension if happening on that particular country. So in this you have to be more aware and more alert.

6- Gold and real estate investors

This is also a very common and general category.Here people used to stay away from stock markets,mutual funds etc. pros is that this is the most safest mode of investment and comes along with guranteed profits. cons is that profits are very limited and low in terms of other modes. here the word of advice I give that you have to change your mindset and try to become more open to change. you have to make a good balanced financial plan and should start investing in mutual funds.

Here I want to say that I am not judging everybody or disrespecting their methods because every person is unique in their mindset,approach,personal perference so according to your category I am saying that you should also try new things with a small start or change.

You can also read more on this topic here. Also you can read more articles like this on this website just go to blog page or choose your category you want to read on homme page.

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Author: Sumit Gupta

I writes blog related education and technology and wants to create awareness related to this topic.

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