The term "average investor" refers to an individual who invests in financial assets such as stocks, bonds or mutual funds with a moderate level of risk tolerance and without specialized knowledge in finance. This type of investor typically seeks to grow their wealth over time through diversified investments while minimizing risks associated with the market fluctuations. The average investor is not an expert in financial analysis or trading, but rather relies on professional advice from financial advisors and makes informed decisions based on their own assessment of risk and potential returns.