Investor profile

An investor profile or style defines an individual's preferences in investment decisions, for example: Short-term trading (active management) or long term holding (buy and hold) Risk-averse or risk tolerant / seeker All classes of assets or just one (stocks for example) Value stock, growth stocks, quality stocks, defensive or cyclical stocks... Big cap or small cap (Market capitalization) stocks, Use or not of derivatives Home turf or international diversification Hands on, or via investment funds The style / profile is determined by Objective personal or social traits such as age, gender, income, wealth, family, tax situation, opportunities. Subjective attitudes, linked to the temper (emotions) and the beliefs (cognition) of the investor. An investor's style is shaped by his or her sense of balance between risk and return. Some investors can tolerate greater risk to have greater return. Some investors want less risk and are content with a reasonable return. Generally, the investor's financial return / risk objectives, assuming they are precisely set and fully rational.