The term "individual investor" refers to an individual person who invests their own money in securities such as stocks, bonds or mutual funds. This type of investor is distinct from institutional investors like pension funds and hedge funds which manage large sums of money on behalf of others. Individual investors typically buy and sell securities through brokerage accounts, either directly or with the help of a financial advisor. They may also participate in various types of investment vehicles such as mutual funds, exchange-traded funds (ETFs), or real estate investment trusts (REITs). The goal for many individual investors is to grow their wealth over time through prudent investing and long term planning.