Risk Profile Questionnaire

About Risk Tolerance

We have adopted the Grable & Lytton risk profiling methodology to help uncover your underlying preferences, experiences, and comfort with financial risk - something most people don’t often reflect on. This profile serves as a valuable tool for both you and your financial adviser to make informed, personalised decisions.

 

Risk tolerance is a relatively stable part of your personality, shaped by both genetics and life experiences. While it tends to remain consistent over time, it can shift gradually with age or in response to significant life events. For this reason, we recommend reviewing your risk profile every two to three years, or sooner if your circumstances change.

 

The Grable & Lytton methodology uses psychometric principles - a blend of psychology and statistics - to provide a scientifically validated and reliable measure of your risk tolerance. Though the science behind the questionnaire is complex, the outcome is simple: a clear, evidence-based understanding of where you sit on the spectrum from conservative to growth-oriented investor.

 

By answering the following questions, you will have a good idea about your attitude to risk and what investment sectors are best suited to you. Tick the most appropriate answer.

 

Understanding Your Risk Tolerance Profile

This questionnaire is designed to help you, and your financial adviser better understand your comfort level with financial risk. Your responses will generate a risk tolerance score that reflects how you typically think and feel about investment decisions involving uncertainty. This score is based on comparisons with a large sample of the adult population and helps identify your general risk profile.

 

Think of your risk tolerance profile like a financial “vital sign”- similar to a blood pressure reading. On its own, it doesn’t determine your financial strategy, but it provides valuable insight that helps guide important conversations about your goals, preferences, and the trade-offs between risk and return.

 

Your adviser will use this information to:

 

·        Explain the risks associated with different financial decisions

·        Explore how your preferences align with your long-term goals

·        Recommend investment options that suit your comfort level and objectives

 

If any of your responses differ significantly from others in your risk group, these should be discussed with your financial professional. Any clarifications or adjustments to your profile should be documented and agreed upon by both you and your adviser to ensure a shared understanding of your risk preferences.

In general, how would your best friend describe you as a risk taker?

You are on a TV game show and can choose one of the following, which would you take?

You have just finished saving for a “once-in-a-lifetime” holiday. Three weeks before you plan to leave, you lose your job. You would:

If you unexpectedly received $20,000 to invest, what would you do?

How comfortable are you with investing in shares or share-based managed funds?

When you think of the word “risk,” which word comes to mind first?

Experts are predicting that assets like property, gold, and collectibles may rise in value, while bond prices may fall. Most of your investments are in government bonds. What would you do?

Given the best and worst case returns of the following investments, which would you prefer?

You’ve been given $1,000. Choose between:

You’ve been given $2,000. Choose between:

A relative leaves you $100,000 in their will, requiring you to invest it all in one of the following. Which do you choose?

If you had to invest $20,000, which mix would you prefer?

A trusted friend and neighbour, an experienced geologist, is forming a group to fund a gold mining venture. It could return 50–100 times your investment, but there’s only a 20% chance of success. How much would you invest?

Do you feel you are appropriately covered against personal and/or business risks such as accident, illness, trauma or death?

How important is ethical investing to you?

Thank you! This is the end of the questionnaire.

Summarising your Risk Profile

Based on your risk profile questionnaire, we believe the following portfolio is appropriate for you. 

Please tick which statement applies to you:

Purpose and Privacy Summary

To provide you with the most appropriate advice, we need a clear understanding of your financial situation, goals, risk tolerance, and personal circumstances. The information you provide helps us align your investment strategy with your needs. We rely on its accuracy and cannot be responsible for outcomes based on incomplete or incorrect details. Please keep us informed of any changes to ensure our advice remains suitable. This process also ensures we meet our legal obligations under Corporations Law. Your personal information is handled in line with our privacy policy, available on request. Please note, the Investor Risk Profile is not a financial product or a guarantee of future returns.