Your Investment Profile

 “The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.” - Benjamin Graham

Factors to consider

People have different investment goals and each goal has an individual investment solution. So, depending on what we need to achieve, whether it is to buy a real estate, save for a holiday or a retirement plan, we can have separate investment strategy to match each goal.  Consequently, the following four factors are crucial for understanding what results we can expect from our investments.

How long will it take for me to achieve my investment goals?

Do I want regular income and/or long-term growth?

Can I sell my investment quickly and easily if I need to?

 What level of risk am I comfortable with?


Duration means how long we want to invest for

    • Short term – under 1 year
    • Medium-term – 1 to 3 years
    • Long-term – over 3 years

If you have a longer investment horizon, you may be able to take on more risk in your investments, because you have more time to recover from short-term losses. Consequently, you can look at equity markets, closed-end or interval funds, and commodities. But if your investment horizon is shorter, you may want to consider less volatile investments, because you will not have as much time to recoup any losses, therefore Money Markets and Open-end mutual funds will be the ones to look at.

    • Saving for a wedding or a holiday is a short-term investment.
    • Saving for the down payment on a house or for child’s education is a medium-term investment.
    • Saving for your retirement or building wealth for family is usually a long-term investment


Returns refer to the profit or earnings generated by an investment over a certain period of time. These returns can be in the form of capital gains (an increase in the value of the investment) or income (dividends, interest, or rental income).

    • Income investments generate a steady stream of income in the form of dividends, interest, or rental income. These types of investments may be suitable for individuals who prioritize stability and want to generate a regular stream of income to meet their expenses or save for a specific goal.
    • growth investments focus on capital appreciation and may not provide as much current income. These types of investments may be more volatile in the short term, but have the potential for higher long-term returns. Growth investments may be suitable for individuals who are willing to take on more risk and have a longer investment horizon.

It's important to note that income and growth investments are not mutually exclusive, and many investment portfolios may contain a mix of both. An investor may prioritize income or growth depending on their specific investment goals and financial situation.

It's important to keep in mind that there is usually a trade-off between income and growth. Investments that offer higher potential returns typically come with higher risk, and may not provide the same level of income as more conservative investments.


Liquidity refers to how easily an investment can be converted to cash without significantly affecting its market value. Investments that are highly liquid can be easily bought or sold in the market, whereas investments that are less liquid may take longer to sell or may require a larger discount to be sold quickly. When considering liquidity, it's important to assess your immediate and future cash needs. An investment that is highly liquid can be useful for individuals who need to access cash quickly or may need to sell the investment on short notice. On the other hand, less liquid investments may be more suitable for individuals who have a longer-term investment horizon and do not need immediate access to cash. Some investments that are generally considered highly liquid include:

    • Cash and cash equivalents: This includes savings accounts, money market accounts, and certificates of deposit.
    • Publicly traded stocks and bonds: These investments can typically be bought or sold quickly through a brokerage account.

Less liquid investments may include:

    • Private equity investments: These investments in private companies may take longer to sell and require more due diligence.
    • Real estate: While real estate can be a valuable long-term investment, it may take longer to sell and require more paperwork than other investments.

Ultimately, the right level of liquidity for your portfolio will depend on your individual needs and circumstances.


Risk is an inherent part of investing, and understanding and managing that risk is crucial to achieving balanced portfolio in order to reach your investment goals.

Risk refers to the potential for loss of capital or decline in the value of your investments.

All investments carry some level of risk, and the key is to understand the level of risk, that you are comfortable with and that is appropriate for your investment goals and time horizon.

There are several types of risks associated with investing, including:

    • Market risk: the risk of losses, due to changes in the overall market or economy
    • Credit risk: the risk of losses, due to default by a borrower, such as a company or government entity
    • Inflation risk: the risk of losses, due to the erosion of purchasing power over time caused by inflation
    • Interest rate risk: the risk of losses, due to changes in interest rates, that affect the value of fixed-income investments
    • Liquidity risk: the risk of losses, of not being able to sell an investment quickly enough or at a fair price
    • Currency risk: the risk, that fluctuations in exchange rates will impact the value of your investments
    • Geopolitical risk: the risk, that political instability or conflicts may affect the value of your investments

Generally, higher returns often come with higher levels of risk and vice versa. For example, Stocks have historically provided higher returns than Bonds, but they are also more volatile and carry a higher level of risk.

When determining your investment profile, it's important to consider your risk tolerance, or your ability to handle fluctuations in the value of your investments. A financial advisor can help you assess your risk tolerance and design a portfolio that is appropriate for your individual needs and goals.

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