Conservative investors aim to maintain initial investment. When they invest $5,000  – they want to be sure that they will get their initial $5000 back. For this reason they usually invest in common stocks and bonds and short term money market accounts.

A moderate investor usually behaves like a conservative investor, but use a portion of their investment funds for higher risk investments. Moderate investors put 50% of their funds in safe or conservative investments, and invest the remainder in riskier investments.

An aggressive investor takes the risks – this means investing higher amounts of money in riskier ventures in the hopes of achieving larger returns. Aggressive investors often have their investment funds in the stock market.