Series 79: Investment Objectives

Taken from our Series 79 Top-off Online Guide

Investment Objectives

While the ultimate goal of every investor is to reap a return on investment, or at least not to suffer a loss, not every investor has the same investment objective. A specific investor’s objectives may be driven by personal circumstances, risk tolerance, time horizon, and tax considerations. The following are common, and in some cases mutually exclusive, investment objectives.

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Common Investment Objectives

Growth

  • Seeks high rate of growth/capital appreciation
  • Willing to tolerate risk
  • Growth stocks tend to have high P/E ratios

Aggressive Growth

  • Seeks highest possible rate of return
  • Very high risk tolerance
  • Aggressive growth stocks tend to have very high P/E ratios

Capital Appreciation

  • Seeks long-term growth over extended time horizon

Value

  • Seeks stocks that are underpriced
  • Value stocks tend to have low P/E ratios