What is a risk profile?
Aggressive Investor Type An investor type that can tolerate high risk. These investors are prepared for significant market fluctuations and are willing to allocate a large portion of their funds to higher-risk instruments. Suitable investments may include stocks, equity mutual funds, and foreign currencies.
Conservative Investor Type An investor type that tends to avoid the risk of loss and prefers investment instruments with a higher degree of certainty. Suitable instruments may include savings, time deposits, and money market mutual funds. If they consider higher-risk instruments such as bonds or stocks, only a small portion of their investment funds would typically be allocated to them.
Moderate Investor Type An investor type that generally understands that investments fluctuate and is prepared to take higher risk. However, the investor will still consider the types of instruments to hold and limit the amount allocated to higher-risk instruments. Suitable investments may include bonds, fixed income mutual funds, and balanced mutual funds.