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A good understanding of your goals, priorities, and personality will help you develop a successful and comfortable investment style. How much of a risk-taker are you? A financial planner can help you understand your risk tolerance and direct you to appropriate investment choices.
Financial planners commonly use five categories to classify risk tolerance.
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Conservative income–oriented investors seek to preserve principal. Asset growth is secondary.
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Moderate income–oriented investors seek to generate and maintain steady income at the expense of most asset growth.
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Conservative growth–oriented investors seek to increase portfolio value while also producing a moderate amount of income.
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Moderate growth–oriented investors seek to grow assets and income while tolerating moderate fluctuation in asset value.
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Aggresive growth–oriented investors seek to maximize returns while tolerating a high fluctuation in asset value.
Also, are you a short-term or long-term investor? Your response, along with the assistance of a financial advisor, will help determine which investment vehicles best fit your style. Delaware Investments provides a quiz that can help you determine what your risk tolerance may be and how you may want to allocate your assets.
This information is intended to provide general investment education and is not intended to provide investment advice. For more specific information on how to allocate your investment savings plan, please contact your financial advisor or Delaware Investments.
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