Financial Terminology Series - 5

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Term for the day


Risk Averse


When an investor expects a similar return from two different investment but with different risk, they prefer the lower risk investment option, is called Risk Averse.

Usually, Risk-Averse Investor dislikes risk and avoids adding high-risk investment i.e. Equity Shares etc. to their investment portfolio. Therefore they do not get a high rate of return on their investment. They prefer to invest in Safer Scheme i.e. Post Office Investment, Bank Deposits, and CD’s etc. offers lower interest returns.

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