Financial markets offer a wide range of investment opportunities tailored to each investor. Each of these opportunities carries distinct objectives, risks, and time horizons. That is why financial experts have developed investor profiles to help individuals choose investment strategies best suited to their personal circumstances. The most used profiles include the conservative, balanced, and dynamic profiles.
Investors with a conservative profile prioritize the preservation of their capital. They have a low tolerance for risk and generally prefer low-volatility investments such as bonds and guaranteed savings products.
Balanced investors seek a middle ground between capital growth and capital preservation. They have a moderate tolerance for risk and are willing to invest in a diversified mix of assets, such as equities and bonds.
Dynamic investors aim to maximize the growth of their capital. They have a high tolerance for risk and are prepared to invest in more volatile assets such as equities, derivatives, and similar instruments.