Investor

Investors range from individuals saving for retirement to huge institutions. Individual investors, often called retail investors, invest their own money, usually through brokerage accounts, pension plans or funds. Institutional investors, such as pension funds, insurance companies, mutual funds and endowments, invest very large sums on behalf of many people.

Investors differ in their goals, time horizons and attitudes to risk. A 25-year-old saving for retirement can usually accept more ups and downs than a 70-year-old who needs a steady income now. Some investors want regular income, others want long-term growth, and some prioritise keeping their money safe.

Investors also differ in approach. Some try to pick individual winners or time the market. Others buy broad, low-cost index funds and hold them for many years.

Investors play an important role in the economy. By buying shares and bonds, they provide companies and governments with money to grow, build and operate. In return, they share in the profits through dividends, interest and rising asset values, while also bearing the risk of losses.