When companies invest, they’re called institutional investors. When people invest their own money, they’re called individual investors. A typical individual investor is saving for retirement, has some mutual funds, and will own a house once the mortgage is paid off. A large part of the financial industry is companies serving the individual investor, buying and selling for individuals, and sometimes offering advice.
- Portfolio Management: Making Decisions about Your InvestmentsTo be successful, an investor needs to do more than just buy some stocks or other assets and then ignore them. Instead, experts suggest, individuals should either take an active role by monitoring their investments or let a professional do it for them.