Understanding Investments

Get to know the basics of investing.

 Your financial professional will work closely with you to understand your investment objectives. The following is a brief description of commonly used terms to describe different investment objectives.

Preservation of capital
Primarily seeks preservation of capital.

Seeks to maintain current income from investments over time. 

Growth and income
Seeks both capital appreciation and some current income.

Long-term growth
Seeks capital appreciation through buying and holding securities over an extended period of time.

Short-term growth
Seeks short-term capital gains through buying and selling securities over a short period of time. 

Risk tolerance
Your financial professional will help you understand your risk tolerance. The following are commonly used words to describe risk tolerance. 

The least tolerant of all risk levels. Investors who have a low level of risk tolerance are willing to accept lower investment returns in exchange for minimal risk and volatility. Similarly, investors with conservative levels of risk tolerance tend to concentrate on investments with minimal price fluctuation and minimal exposure to loss of investment principal. 

The moderate risk tolerance focuses on average investment risk. Investors with a moderate risk tolerance are willing to accept a substantial amount of market risk and volatility for the potential of higher investment returns.

An aggressive approach to risk is typically the most tolerant of all risk levels. Investors with an aggressive level of risk tolerance are willing to accept a substantial amount of market risk and volatility for the pursuit of potentially high investment returns. 

Speculation uses short-term market trends and short-term growth potential. The securities in a speculative investor’s portfolio will have above-average risk that offsets the potential for short-term gains. Such a portfolio also has the potential for short-term losses.

Doug Ketterer

Chief Executive Officer and Founding Partner

The vision and influence to advance an industry. Doug is passionate about the value of personal advice. He believes that customized solutions created by one advisor, working with one client, aren’t just the core of wealth management—but the key to its future. A well-known Wall Street thought leader with over 30 years in the industry, Doug is a sought-after source of ideas that elevate the advisor-client experience. With insight gained as a long-time Morgan Stanley executive, and a clear-eyed commitment to the principles he preaches, Doug is in the right place to lead Atria, its subsidiaries—and the advisors they serve—to a better future.