fjárfestir

Fjárfestir is an Icelandic term that can denote either the act of investing or a person who does it. The related noun fjárfesting means investment, and fjárfestir is commonly used to refer to an investor, while the verb form describes the act of putting money into assets.

A fjárfestir commits capital to assets or ventures with the expectation of a financial return. This can include individual or institutional investors such as private individuals, pension funds, insurance companies, banks, and venture-capital firms. Investments aim to balance potential return with acceptable risks and are guided by an investment philosophy or strategy.

Investment activities typically involve evaluating opportunities, performing due diligence, and constructing a portfolio that diversifies across asset classes. Common vehicles include equities, bonds, real estate, private equity, and funding rounds for startups. Investment horizons range from short-term trading to long-term ownership, and risk management, diversification, and cost considerations are central to most approaches.

The Icelandic financial market features local trading venues and a range of investment products. Investors face various risks, including market, credit, liquidity, and regulatory risk. The market operates under the oversight of authorities such as Fjármálaeftirlitið (Financial Supervisory Authority of Iceland) and within the monetary framework of the Central Bank of Iceland, aligned with applicable European Economic Area regulations.

Sustainable and responsible investing has grown in prominence, with many fjárfestir incorporating environmental, social, and governance factors into decision-making.