Conservative investors prefer the preservation of capital by investing in lower-risk securities. Moderately conservative investors maintain a major part of the portfolio in lower-risk securities and invest 20-30% in hybrid mutual funds/large-cap schemes. The portfolio of an aggressive investor comprises of more than 55% in equity for long term capital growth. Very aggressive investor portfolio comprises stocks for strong long term growth with intermittent volatility in the medium term.

Investors need to assess the risk level of investments for better risk tolerance.