Defining an Investor

defining an investment strategy

Just like companies, investors are also different and have unique characteristics which define them. Companies looking to offer services or pitch to investors should understand the nature of the investor to have a better chance of being able to do so.

The following are the characteristics which define an investor:

Type of Investor: Individual or Institutional

If Institutional,
Structure of Firm: Type of firm, Organizational structure
Registration Details: Governing rules, Tax implications
Nature of Work: Personal investment or Investment company

Background of Team/Person: Skills, Experience

Risk Appetite: High/Medium/Low, Acceptable value at risk, Attitude towards loss (loss is bad, loss teaches you, its ok it happens)

Return Expectations: Any particular expectations, Goals in mind

Type of Investments: Ratio of investable amount to annual income (refer to Hierarchy of Personal Investments), Active or Passive investments, Time commitment, Term of investment

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