How Do u Define what's conservative, moderate and Aggressive?

We look at a person's risk appetite - how much he can stomach in terms of losses. We don't bother asking clients how much profit he can take because that's of course the higher the better; what bugs people are losses.

Anyone who can take a loss of 15 to 20% is a fairly aggressive client. When I say loss , it means that the asset can go up or down by 15% or more. If you can take more than 20% , you are very aggressive.

If you can take anything between 8 and 15%, you should be somebody who's in moderate range.

A conservative fellow can probably only take losses below 6%. He is one who will be quite jittery and loses sleep if he sees a 5% loss.

Your pain threshold will tell us whether you're conservative, moderate or aggressive investor because all asset classes will have some volatility. Of course, the higher risks also comes with the possibility of higher returns.