Do you know your risk appetite? (1)

Last week, we talked about how saving alone is not enough — your money needs to grow.

But today, let me tell you about two people.

Kunle and Bisi.

Kunle had been hearing everywhere: “Invest in stocks, that’s where the real money is.” So one day, he took almost all his savings and put it into the stock market.

At first, everything looked good.

Then the market dropped.

Small drop… then another… then another.

Kunle could not sleep. Every morning, he checked his phone with fear. Within weeks, he panicked and sold everything — at a loss.

Now, let’s talk about Bisi.

Bisi doesn’t like risk at all. Her own philosophy is simple: “I don’t want any trouble with my money.”

So she kept all her savings in a regular bank account.

No risk, no stress.

But three years later, when prices of things doubled, Bisi realized something painful — her money had not grown, and its value had reduced.

Two people. Two different mistakes.

One problem:

‘They didn’t understand their risk level.’

What Is Risk Profile?

Let’s keep it simple.

Your ‘risk profile’ is how comfortable you are with your money going up and down.

That’s it.

Some people can sleep peacefully even when their investment drops.

Some people will not sleep if ₦5,000 is missing.

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As our people say, *“Who no like wahala no go follow fight.”

Investing comes with ups and downs. The question is:

How much “wahala” can you handle?

The 3 Types of Investors

Let’s break it down with people you can recognize.

 1. The Conservative Investor

This is Uncle Ade.

Uncle Ade likes peace of mind. He checks his account regularly and prefers to see steady growth — not drama.

If his money drops, even a little, his blood pressure will rise.

Traits:

Low tolerance for risk

Prefers stability over high returns

Focuses on protecting money

Best Investments:

Treasury Bills

FGN Bonds

Fixed income funds

Uncle Ade may not make the highest returns, but he sleeps well at night.

In short: Slow and steady, no drama.

2. The Moderate Investor

This is Ngozi.

Ngozi understands that money needs to grow, but she also values peace of mind.

She is willing to take some risk — but not too much.

Traits:

Balanced approach

Can tolerate small ups and downs

Thinks long-term

Best Investments:

Mutual funds

A mix of bonds and stocks

Ngozi doesn’t chase quick money. She builds gradually.

In short: Balance is her strategy.

3. The Aggressive Investor

Meet Sadiq.

Sadiq understands that high returns come with higher risk — and he is ready for it.

If his investment drops today, he is not shaking. He is thinking long-term.

Traits:

High tolerance for risk

Focused on growth

Comfortable with volatility (ups and downs)

Best Investments:

Stocks

Equity funds

Business investments

Sadiq knows the journey may be rough, but he is looking at the destination.

‘In short:’ He can handle the heat.

How Do You Know Your Own Risk Level?

This is where honesty comes in.

Ask yourself:

If your money drops by 20%, will you panic?

How soon will you need this money?

Do you already have emergency savings?

Let’s simplify it:

If you hate loss → ‘You are Conservative’

If you want balance → ‘You are Moderate’

If you can wait and take risk → ‘You are Aggressive’

Be honest with yourself.

This is not where you say, “I can manage.”

Because when money starts going down, your real self will show.