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.