About this questionnaire
This questionnaire aims to uncover your attitude to investing, your understanding of financial markets and how you may react during certain investment market and economic conditions. The following questions help us to understand your tolerance for financial risk. The information gives us an understanding of your investment profile and helps us to understand what investment mix will be appropriate to achieve your financial goals.
1. To achieve a higher return than cash and fixed interest over longer time periods (five plus years), a higher level of risk must be taken. Generally, there is a mix of both lower and higher risk assets in an investment portfolio. What percentage of your portfolio would you be willing to place in higher risk/higher return investments (such as shares and property)?
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Up to 25%
Up to 50%
Up to 75%
Up to 100%
2. How long do you intend to invest the majority of your money (i.e. super and other investments) before you will need access to it?
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Less than 2 years
2 to 4 years
4 to 7 years
More than 7 years
3. What do you want to achieve from your investments (including super)?
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I want to protect my capital and receive a small amount of income.
I primarily want to protect most of my capital, however, would also like some long-term growth of my asset values.
I primarily want long term growth of my asset values, however, would like to protect some of my capital as well.
I primarily want to generate long term growth of my asset values and am not concerned with capital protection.
4. How much knowledge and experience do you have of investing?
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I am not confident making investment decisions, nor do I have any experience investing
I have low confidence in making investment decisions but have some experience investing.
I have some experience investing and know that returns from investments can vary from year to year and that it is important to diversify my investment assets.
I am an experienced investor and I understand that different sectors and asset classes carry varying levels of risk and potential return.
5. What is the highest risk investment you have actively made in the past (excluding a family home)?
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Cash and term deposits.
Investment property, direct shares or managed funds without borrowing money.
Borrowing to invest in property, direct shares or managed funds.
Invested in, or started your own business.
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6. If you invested $100,000 in the Australian share market, what would you do if the value dropped by $20,000 (-20%) to $80,000 within the first year?
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Sell the entire investment immediately so you don’t lose any more money.
Sell some of the investment immediately to reduce your potential exposure to further losses.
Do nothing because you feel that it will rise in value again.
Put in more money now, while values are down.
7. If you invested $100,000 in the Australian share market, how often would you be prepared to tolerate a negative investment return, for example a loss of $20,000 (-20%), in order to receive potentially higher returns on average?
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Never
One year in ten years
One year in six years
One year in three years
8. Inflation erodes the value of money over time, reducing its buying power. For example, if inflation is 2%, $10 today will only have the buying power of $8.20 in ten years. Which option below most suits you?
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It is most important that my capital is protected, even if inflation reduces its value over time.
I want my most of my capital to be protected but also at least keep pace with inflation. I am willing to take some risk to achieve this result.
I am willing to take on risk, so my capital has the potential to produce returns above inflation.
I am willing to take higher risk because I want my capital to grow substantially over time.
9. What is the annual return (before tax) you would like to see from your portfolio if we assume investing in a term deposit may give you a return of 2% per annum and achieving a higher return will involve taking on a higher level of risk?
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2%
2% to 4%
4% to 6%
6% and above
10. Suppose you are not able to meet your financial goals with your preferred risk level, would you:
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Substantially adjust your goal so it becomes achievable without taking on more risk.
Slightly adjust your goal and boost your target high risk/high return assets by 20% to meet the goal.
Minimally adjust your goal and boost your target high risk/high return assets by 40%.
Keep your goal as is but increase your risk level to make it achievable.
11. What is your stage in life?
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Retiree
Preparing for retirement
Mature or with teenage children
Young investor or young family
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Risk Profile Score
Suggested Risk Profile: Secure
This portfolio focuses entirely on the preservation of capital. As such the return is likely to be low and consistent compared with the other risk options offered. The portfolio is restricted in its ability to reduce taxable income or the tax effectiveness of that income. It is not an appropriate investment option for medium to long-term investors seeking capital growth.
Suggested Risk Profile: Defensive
This is an income-focused portfolio that has a small exposure to growth assets. The main emphasis is on generating income, with some capital risk in order to achieve overall portfolio growth. It is expected to have a low fluctuation in short-term value, with some small shorter-term capital risk. The income generated by the portfolio may have a small tax benefit from some share dividend franking credits. It is suited to an investor who either seeks a high level of income or has a relatively short investment time frame.
Suggested Risk Profile: Conservative
For investors who are seeking an income stream with some capital growth attached. It has a high exposure to fixed income securities, but also includes exposure to share and property markets. It is suited to medium-term investors who are seeking a reasonable degree of capital stability, but who also want to protect their assets from inflation. Some tax relief on income may be available from franking credits.
Suggested Risk Profile: Balanced
Using a slightly higher exposure to growth assets than income assets, this portfolio is expected to have lower short-term fluctuations in value than the other growth-based investment portfolios. Its aim is to produce capital growth in a medium- to long-term time frame. It has a “balanced” exposure to shares, property and fixed income assets, while the income generated by the portfolio may be partially tax effective.
Suggested Risk Profile: Growth
A growth-oriented portfolio that is best suited to long-term investors. A small income exposure should slightly reduce the shorter-term fluctuations of the portfolio’s value. It is best suited to a long-term investor who can accept some investment risk over the long-run. The income stream may be partially tax effective and the portfolio has a high exposure to share and property to provide long-term investment growth.
Suggested Risk Profile: High Growth
A 100% growth based portfolio with no exposure to income assets. It has a strong emphasis on maximising capital growth over the long term. The portfolio is likely to produce a minimal, tax effective income. Investors should expect high short-term fluctuations in values and a higher chance of capital loss. However, they are prepared to accept this as a trade off in achieving their long-term investment objective.
Do you think the suggested risk profile above accurately summarises your investment preferences?
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Yes
No
If no, please provide further details why you answered this way?
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