Wednesday 4 May 2011

What type of investors are you?

To be free from financial freedom, have you started by saving? Have you built up you investment nest and ready for your investment journey? Before you jump into it, you would need to identify your risk appetite. Do you classify yourself as a risk taker or a risk averse investor? This is important to identify what type of financial products one will be comfortable in.

Lower risk investments will usually generate lower returns and higher risk investments will generate higher returns. Higher returns are expected for compensating investors for taking additional risk. Hence a risk taker will go for high-risk products in their portfolio. Risk averse person dislikes risk and goes for "safer" products which give low returns.

Spend sometime to think about what kind of investor you are, before we move on to different products in the market.

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