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Distinguishes Individual and Institutional Investors
Distinguishes Individual and Institutional Investors
Typically invest smaller amounts of Invest substantial sums of pooled funds, often
Size of Investments personal savings. managing large portfolios.
Varied investment horizons, reflecting Typically have longer investment horizons, often
individual goals, which can range from focused on long-term wealth preservation or
Investment Horizon short-term to long-term. growth.
May diversify holdings, but levels of Typically have highly diversified portfolios,
Diversification diversification vary widely among spreading risk across various asset classes and
individual investors. securities.
Involvement May be actively involved in managing their Investment decisions are made by professional
investments or use financial advisors. portfolio managers or investment committees.
Goals can vary widely, from retirement Institutional goals often revolve around
Goals planning to saving for education or preserving or growing capital for the benefit of
achieving financial independence. stakeholders or beneficiaries.