Types of investment activities

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The Director of the construction company, the hereditary conservative John Smith, holder of the shares of APPLE and Alphabet Inc. receives a small stable income annually and generous dividends. The student of the Faculty of Economics Rogers recently discovered Forex and with varying success speculates cryptocurrencies, once even obtaining  profit on the invested capital. His father, Alan Rogers, invests in a hedge fund, receives an average profit with average risk and is skeptical of the initiative of his son, who cares about increasing his capital more than his safety. Each of them is an investor, but each has different objectives and risk approaches.

What distinguishes these objectives and risks from each other? Approaches to investment activities and expected results Conservative: almost risk-free, but low income. Aggressive: high risk, but with high income. Moderate: medium risk, as well as medium and lower, with high income. Volatility (price variation) of different asset Fax Lists classes The total level of risk depends on the average risk level of all your assets, the totality of which determines the type of your investment portfolio. What types of investment portfolios exist? Conservative portfolio: low risks, low returns This portfolio contains cheap and slow-growing, but reliable assets.



These may be the titles of state-owned companies, or simply large and reliable companies, which are not particularly distinguished for innovation. These companies, manufacturers and suppliers of goods and services that have solid demand, and whose reduction depends on the public health of the economies rather than market competition. As an example, we can cite the Procter & Gamble Company (P&G), one of the largest transnational producers of consumer goods. Suppose that on December , you bought  shares of . Its maximum reduction in  years was, on June , when its prices fell to. And the maximum profit would have been  selling the shares.