Many people assume investing is just like a magic wand where you put in money, wait for a short time, and boom – your money triples!
In as much as investments are designed to increase your assets, it is also subject to external factors that if not effectively managed could make your deposit stagnant or experience a dip. These factors could be a result of economic factors, social developments, or time requirements.
The ability to navigate these external factors is known as risk. Investors are expected to have a level of threshold to be able to forestall any of these challenges and ensure the value of their assets doesn’t take a massive hit.
The rate at which you approach this threshold is referred to as risk appetite. Today, we will look at different types of risk appetite to see which one is best for you:
Low-Risk Appetite
This simply means you don’t like to dilly-dally about whether an investment is profitable. People within this category go for Certainty over Probability. They would rather watch people try it out to see if they cash out or shed premium tears before deciding their fate.
The best way for investors in this category is to go for investments that have very minimal risk.
Medium Risk Appetite
For people under this category, the right dose of everything is perfectly fine. They don’t mind losing some bucks whilst they don’t mind making some ROI directly proportional to what they can let go of.
The best option for this type of investor is to opt for instruments that guarantee greater consistency and lifespan. The percentage profit they can make should be something they can do on a regular basis.
High-Risk Appetite
These investors are diehard fans of Investing even at the point where they lose it all. They understand that moneymaking can be topsy-turvy and they don’t mind going through the rollercoaster. As long as they can gain from time to time, they don’t mind losing money once in a while.
The best advice for investors under this category is to ensure they take more calculated steps when investing, as there are some cases where the failure of an investment will appear like handwriting on the wall.
Which investor are you? Zimvest has the right product for you.
No matter your Risk Appetite, Zimvest has a bespoke product that will help you fulfill your investment goals and set you on a profitable path. Visit our website today to get started.
