Wealth Cycle based categorisation of investors
financial needs, refer to using a generalised
approach to saving and investments as the basis
of classsification, rather than age or life stages.
Sr.No. |
Stage |
Financial
Needs |
Investment
Preferences |
1. |
Accumlation
Stage |
Investing
for long term identified financial goals |
Growth options
& long term products. High risk appetite |
2 |
Transition
Stage |
Near Term
needs for funds as pre- specified needs
draw closer |
Liquid &
medium term investments. Lower risk appetite |
3. |
Reaping
Stage |
Higher
liquidity requirements |
Liquid and
mediu term investments .Preferences for
incmoe and debt products |
4 |
Inter- Generational
transfer |
Long term
investment of inheritance |
Low liquidity
needs. Abillity to take risk & invest
for long term. |
5 |
Sudden Wealth
Surge |
Medium to
long term |
Wealth Preservation.
Preference for low risk products. |
