Why Profiling is crucial
What is Investor Profiling?
“Investor profiling is the process of gathering and analyzing information about an investor's financial situation, investment objectives, risk tolerance, time horizon, and other relevant factors to create a comprehensive profile of the investor.”
What is its goal?
“The goal of investor profiling is to understand the investor's unique needs and preferences in order to tailor investment strategies and recommendations that align with their financial goals and risk appetite.”
Which are the investor objectives?
“Financial goals is crucial for creating a suitable investment strategy. Common financial goals include retirement planning, education funding, wealth accumulation, and income generation.
The time horizon refers to the length of time an investor has before they need to achieve their financial goals. Time horizons can range from short-term to long-term and significantly impact the choice of investment strategy.”
How can we perform a complete analysis?