Risk profiles can be broadly categorized into five main types, each with further subtypes based on factors like income and investment horizon:

1. Conservative: Investors with a conservative risk profile have a low tolerance for risk. They prioritize the safety of their capital over high returns. Investments for these individuals include treasury bills, corporate bonds, sovereign bonds, and debt-based mutual funds. Their investment horizon is typically short, and they seek to avoid negative returns.

2. Moderately Conservative: These investors are slightly more open to risk than conservative ones but still prioritize stability. They aim for modest returns and prefer lower-risk investments while accepting some degree of market fluctuation. Suitable investments include a mix of debt instruments and low-volatility assets.

3. Balanced: Balanced investors seek a middle ground between risk and return. They aim for a diversified portfolio that includes a moderate share of equities along with debt instruments to manage risk. They are comfortable with moderate risk levels and seek to achieve higher returns without exposing themselves to significant market volatility.

4. Moderately Aggressive: Investors with a moderately aggressive risk profile are willing to accept more risk for the potential of higher returns. Their portfolios often include a higher proportion of equities and equity-based mutual funds, with some debt instruments to balance the risk. These investors can handle greater market fluctuations and typically have a longer investment horizon.

5. Aggressive: Aggressive investors are focused on maximizing returns and are comfortable with high levels of risk and market volatility. They predominantly invest in equities and have a long-term investment horizon, which allows them to withstand short-term market fluctuations. These investors are often experienced and have a substantial amount of disposable income.