What Type of Investor Are You?

An investor’s personality is decisive for his or her type of investment strategy. There are financial products tailored and suitable for each individual investor. The first step, therefore, is a personality test: Which type of investor are you?

Investor Personality Test

1. What is your goal when you invest?

A: An investment that is not subject to major fluctuations in value.

B: To be able to maintain the value of my investments with my regular income.

C: To keep the value of my investments constant and gain some profit.

D: Mainly, to generate profits.

2. How long do you plan to hold your investments?

A: Two years or less.

B: Three to five years.

C: Six to seven years.

D: More than ten years.

3. How would you react if your portfolio were to drop 15% within one year?

A: Oh dear. I withdraw my money and secure it in a savings account.

B: I definitely take out some of the money and secure it.

C: I wait till my losses are balanced out again and inform myself about other investment opportunities.

D: I keep to my strategy and stick to the investments.

4. What is your stance toward short-term losses with the perspective on large gains long-term?

A: I prefer little risk and few losses in my portfolio.

B: I prefer little risk, but if a once-in-a-lifetime chance comes up, I sometimes strike and take short-term losses.

C: I often accept short-term losses if I can make higher profits from them.

D: In the long term, I always strive for the highest profits, the risk is a necessity.

5. “I accept fluctuation of a market if I can make high profits off it”

A: I disagree entirely.

B: I’d rather not.

C: It depends on the situation.

D: I agree.

6. “My main focus is on security. Keeping my account balance is more important to me than higher returns.”

A: Yeah, that’s true. It’s important to have a certain amount on one’s account.

B: I neither agree nor disagree.

C: No, not necessarily.

D: In order to achieve high returns, one has to accept risks. I don’t let a low account balance impress me.

7. “How advanced are you in investments?”

A: Investing is new to me.

B: I only recently started learning about the topic.

C: I have a solid foundation and feel pretty comfortable with my knowledge.

D: I understand the financial sector and know where to find material and what to pay attention to.

Here is the answer key:

Investor Types

The most frequently selected answer was:

A. The Defensive:

What is most important to you is a secure investment, preferably without risk and fluctuation.
Cash, Securities

B. The Conservative:

The distribution of investments is conservative with a pinch of risk.
Cash, Shares, Securities

C. The Moderate:

You are rather courageous and like to take the occasional risk, but also have grounded investments.
Securities, Shares/Assets

D. The Risk Taker:

High returns and risks simply belong together. And you love risks!
Full risk! Shares and Assets