How financial planning, risk profile changes with age? Mrin Agarwal explains

economictimes.indiatimes.com:

Mrin Agarwal, Founder, Director, Finsafe, says “there are conservative, moderate and aggressive risk profiles. Someone who is aggressive means that they want their money to grow and they are willing to take a lot of risks to get their money to grow. Someone who is conservative means that they do not want to take risk and they really want a very stable sort of a return in their portfolio. Then of course, one can be moderately conservative or moderately aggressive as well.”
Today we are just going to focus on the risk profiling of these kinds of investors because as you grow in your life, not only in terms of age, but in terms of your income, your lifestyle gets better. A lot of things around you in terms of financial planning also keep changing. Till a certain age, you have financial responsibilities. After a certain age, it just goes away. When you are a person who has a financial portfolio, what kind of risk profiling should be done? And what kind of risk profiling changes as per age? What exactly is investor risk profile?
Every investor has a risk profile depending upon what is the sort of risk that they want to take.

So you have conservative, you have moderate, you have aggressive. Broadly, these are the three categories. Someone who is aggressive means that they want their money to grow and they are willing to take a lot of risks to get their money to grow.

Whereas someone who is conservative means that they do not want to take risk and they really want a very stable sort of a return in their portfolio. So, these are typically the three different types of risk profiles. And then of course, you can further bring it down to say, moderately conservative or moderately aggressive as well.