The options you choose to put your money in, reflect the investment strategy you are using - whether you realize it or not. Most people adopt the following approaches:-

Conservative

These investors take only limited risk by concentrating on secure, fixed-income investments etc.

Moderate

Such Investors take moderate risk by investing in mutual funds, bonds, select bluechip equity shares etc.

Aggressive

These are investors who take major risk on investments in order to have high (above-average) returns like, speculative or unpredictable equity shares, etc.

As a matter of fact, the investment approach of an investor is directly linked to his or her ability to shoulder risk. The ability to take risk depends largely on personal circumstances and factors like age, past experiences with investing, level of responsiblility etc.

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