What Is the Opposite of Risk Averse?

By Staff WriterLast Updated Mar 25, 2020 12:50:32 PM ET
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In the realm of investments, the generally accepted opposite of risk adverse is risk taker or risk lover. A risk taker is an individual willing to a greater risk in investing in hopes of obtaining a higher, albeit less likely, return on that investment.

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An aspect of determining what type of investment is most suitable to an individual is an analysis of that individual's inherent risk tolerance. The more tolerant a person is of risk, a riskier but potentially more profitable investment is more appropriate. On the other hand, a risk adverse person typically is placed in more conservative investments that are more secure but less profitable.