An investor is an investor. He invests capital on the financial market in order to make a profit. A rough distinction is made between private investors and institutional investors. Stricter investor protection measures have been in place for private investors since 2004. The European Union’s Financial Markets Directive improves investor protection in terms of transparency on the financial markets.

Investors can be categorised into four different investor types.

  1. The substance-oriented investor

    This investor places a high value on the security of an investment. An investor of this type foregoes high yields and focuses on guaranteed returns. He typically invests his money in call money, savings accounts or building society contracts.

  2. The income-oriented investor

    This investor wants to generate a secured interest income with his investment. Although security is important to him, he is nevertheless prepared to accept risks and price fluctuations for higher returns. The income-oriented investor invests his money primarily in pension funds or fixed-income securities.

  3. The growth-oriented investor

    This investor invests his capital in shares of indices such as the DAX or the Dow Jones, as well as in ETFs. He takes advantage of opportunities from price and currency gains. Security plays only a subordinate role for him.

  4. The opportunity-oriented investor

    For this investor, security plays little or no role. He speculates on price and currency gains and aims for a maximum level of return.