Risk Profile Questionnaire

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What this questionnaire covers:

Attitude to investment risk is a critical component in selecting an appropriate mix of investment for every investor.

Assessing a person’s tolerance to investment risk is a key aspect of portfolio construction. The ‘risk profile’ of an investor helps to determine the proportion of growth investments (shares and property) compared to non-growth investments (cash, term deposits and fixed interest) included in your selection of investments.

We assess your risk profile in four parts;

Your feelings towards money changing in value.

Your agreement of your risk profile.

The mathematical calculation of providing for your financial needs.

Your knowledge and experience with investments and finances.

A person’s individual risk profile often changes over time for various reasons. Additionally, it is normal to have different risk profiles for your investment horizons. For example, a person may accept higher risk/return characteristics for their super whilst accepting no risk for their day to day savings.

Average completion time: 9 minutes.
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Name* This field is required.Before we start, we need to get your full name for our records.
First Name
Last Name
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Email* This field is required.Please use the same email you provided to us.
example@example.com
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What level of investment return would you like to earn over the next 10 years, compared to a term deposit with a major Australian bank?* This field is required.(Your attitude to investment return)
I am happy with the return offered by term deposits
1.5 times the interest rate of term deposits
2 times the interest rate of term deposits
3 times the interest rate of term deposits
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How would you feel if your investment value reduced from $100,000 to $70,000 over a 3-month period?* This field is required.(Your attitude to capital loss)
I would feel extremely uneasy and would probably want to move the entire investment balance to cash to avoid any further loss.
I would feel somewhat uneasy and would talk with my financial planner and anyone else who might be able to help. I think I would want to make some changes, but I would need professional guidance on what to do.
I understand that my portfolio value is not a fixed value and can move up or down dramatically sometimes. With such a large change, I would certainly seek advice from my financial planner to confirm I am invested appropriately.
I would consider investing more to take advantage of the lower entry prices of the market.
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Investments that go up and down in value in the short-term (i.e. have volatility) are more likely to produce higher returns than investments that remain steady. Are you prepared to experience volatility in your investments in order to increase the chance of higher returns?* This field is required.(Your attitude to investment volatility)
Yes.
Yes, for a significant part of my investment portfolio.
Yes, but only for some of my investment portfolio.
No, not at all.
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Which of the following risk/return scenarios would you be most comfortable with if you were investing money long term (10 years or longer)?* This field is required.(Your attitude to Investment Risk/Investment Return)
(a) 2.5% p.a. average return (Range of return: between 1.50% p.a. and 3.5% p.a.) (b) No negative return (loss of capital)
(a) 4 % p.a. average return (Range of return: between -6% p.a. and 14% p.a.) (b) 1 year in every 5 years will experience a negative return (loss of capital)
(a) 5 % p.a. average return (Range of return: between -10% p.a. and 20% p.a.) (b) 1 year in every 4 years will experience a negative return (loss of capital)
(a) 6.5 % p.a. average return (Range of return: between -19 % p.a. and 30% p.a.) (b) 1 year in every 3 years will experience a negative return (loss of capital)
I do not know how to answer this question.
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Inflation erodes the value of your savings. Investing in ‘Growth’ investments can counter the eroding effect of inflation but will also expose you to the risk of short-term losses.* This field is required.(Your concerns about inflation)
I don’t understand how inflation would impact my life.
Inflation may erode my savings, but I have no tolerance for loss.
I am conscious of the risk’s inflation presents but would prefer a middle ground.
I am comfortable with this trade off to beat inflation.
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If you were forced to live on less money for the remainder of your life how would you manage?* This field is required.(Your attitude to change)
I would keep spending as I always do. (my current lifestyle is more important than worrying about my future needs)
I would find a way of earning more money from working.
I would find ways to reduce my spending.
I would sell personal assets or downsize my home.
I would look for a better return on my investment and accept more ups and downs of the investment market.
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Compared to most other people how would you rate your ability to cope with financial changes forced upon you?* This field is required.(Your resilience)
I really feel very stressed when something changes that I did not want. I find I get moody and irritable when a change has been forced on me.
Initially I get a bit concerned about a change when I first find out about it but once I have had a chance to consider how this impacts my life and make the necessary adjustments, I generally feel ok and continue.
I am an easy-going kind of person. I could be described as a ‘glass half full kind of person.
Generally, I see the positive side of change and I always find a way to make things work.
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Calculation
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Results:

Your risk total score from questions: {calculation}

To discuss with your financial advisor.

Risk Profile benchmarks:
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Discussion NotesPlease feel free to enter any thoughts or questions that you have on the questions in this questionnaire. Once completed, please Please remember to press SUBMIT below to finish this questionnaire.
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What this questionnaire covers:

Results: