Personal Investors

Investor temperament

Your investor temperament depends on the level of risk you’re willing to take with your investments. The descriptions of each investor temperament below can help you get an idea of how much risk you feel is acceptable.


  • You're concerned about wide fluctuations in the market, regardless of your investing time frame.
  • You lean toward bonds because they're relatively safer than stocks.
  • Even though money markets provide lower returns, you're comfortable with investing in them—even for long-term goals—because they're safer than stocks or bonds and there's little risk of losing your principal.*


  • You can tolerate some market fluctuations.
  • Your asset mix includes stocks and bonds, and you want to remain invested in stocks for at least five years.


  • Market fluctuations don't keep you awake at night, and you can accept the risk of losing some of your investment for the potential of earning higher returns.
  • You don't mind investing more in stocks than in bonds.
  • You're comfortable with not changing your asset allocation entirely to bonds and money market funds until your student is ready to enter college.

*An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund.

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