Impact of personality on investing behaviours
A simple survey to assess your propensity towards risk
The impact of risk type on investing is significant. It shapes an investor's approach, strategy, and choices in the financial markets.
The three primary risk types are—risk-averse, risk-aware, and risk-taking. These can delineate different investor attitudes and behaviours towards risk and potential returns.
Understanding these can help in tailoring investment strategies that align with one's risk tolerance and financial goals.
Risk averse
Risk-averse investors do not like taking risks and consider the potential loss of taking risks too great to consider. They prefer stability and known outcomes for your investments.
Characteristics associated with risk aversion:
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Seeking stability and reliability
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A desire to avoid errors and changes
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Staying in the comfort zone
Risk aware
Risk-aware investors are willing to take some risks but are just as comfortable with stability and reliability. They are likely to take calculated risks when it comes to investing.
Characteristics associated with risk awareness:
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Happy with stability and reliability
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Equally happy with change
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A desire to know what they are getting into
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Tend to make informed risk decisions
Risk taking
You like to take risks and consider exploring solutions and actions outside of your comfort zone. You can handle the potential uncertainty when considering investment success and outcome.
Characteristics associated with risk-taking:
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Resilience
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Comfort with change
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Enjoy new things
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Prepared to take risks
Disclaimer: This content is for entertainment and educational purposes only. Nothing in the content materials shall be considered legal, financial, or actuarial advice. WealthiHer is not liable or responsible for any actions, inaction, or direct or indirect result of your choices and actions.
Disclaimer: This content is for entertainment and educational purposes only. Nothing in the content materials shall be considered legal, financial, or actuarial advice. WealthiHer is not liable or responsible for any actions, inaction, or direct or indirect result of your choices and actions.