Types of Investors, From Sleeping Investors to Aggressive Investors, which one are you?

In the digital era, now anyone can become an investor in both the capital market and crypto assets. There are many different types of investors in the investment world, and each investor has his or her own views on how to respond to investor risk.

In the digital era, now anyone can become an investor, both in the capital market and crypto assets. There are many different types of investors in the investment world, and each investor has his or her own views on how to respond to investor risk.

Quoting Pintu Academy, Sunday (12/6/2022), this will also help investors determine investment products that suit their respective risk profiles.

There are two aspects of consideration in investing, namely based on potential profits and risks. If market participants find an investment worth investing in, they need to consider both things before investing.

Understanding Investors

The meaning of investor is any individual or other entity that places funds with the hope of obtaining a financial return.

Investors rely on different financial instruments to earn returns and achieve their own financial goals, from setting up retirement savings, funding college education, or simply accumulating additional income over time.

Meanwhile, according to experts, investors are individuals or institutions that carry out long-term and short-term investment activities.

This understanding was explained by Nasarudin and Surya in 2004 through their book entitled “Legal Aspects of the Indonesian Capital Market”.

4 Types of Investors

The following are the types of investors in the community, including which one are you?

Conservative Investor

Conservative investors are the type of investors who have the lowest risk profile. This type of investor has the characteristics of wanting a safe investment and the rate of return tends to be stable and is very afraid of reducing the principal of the investment.

Generally, those who fall into the conservative category are novice investors who are just interested in investing. Investors like this usually place the level of security above the profits generated.

Moderate Investor

Moderate investors are the types of investors who choose a moderate risk profile. This type of investor is generally an investor who targets medium-term finance and is prepared for a rate of return whose fluctuations are not too significant.

This type of investor is still not too brave to take high risks. For moderate investors, they still tolerate risk in investing.

However, this does not apply to risks that are classified as large. The presence of fluctuations that occur in the asset market has also begun to be understood by this type of investor.

Generally, moderate investors always look for a balanced proportion between the income received and the risks that may occur. This type of investor is also always vigilant in choosing the type of investment

Aggressive Investor

Aggressive investors are the types of investors who have the principle of high risk-high gain. This type tends to look for high returns or in other words this type is brave to take high investment risks.

This type of investor is always ready if the investment is reduced or even lost to get high returns. Generally, this type of investor is an investor who already has a lot of experience.

These types of aggressive investors are those who are used to dealing with fluctuations in asset market prices, even to extreme fluctuations.

This type of aggressive investor is also never afraid to save his capital in investment instruments that have a high risk profile.

Sleeping Investor

Sleeping Investor means an investor who earns big profits without having to do much. This term has become popular recently in the investment world, especially stock assets.

This type of investor is usually a long-term investor. Not only as a form of investment, but this type of investor also has a stable psychological health condition because he doesn’t think too hard about monitoring asset movements excessively.

Becoming a sleeping investor can be started with small capital according to financial capabilities. To become a sleeping investor, you must understand the financial fundamentals and the investment model you want to buy.