RISK PROFILE
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In order for us to make appropriate investment recommendations we need to determine your Investor Risk Profile.  This questionnaire will enable you to determine your profile  and will assist your advisor in preparing your Statement of Advice and provide in going recommendations.

INVESTOR
RISK PROFILE 

The information you provide in this questionnaire will enable us to determine your investor risk profile. We use your investor risk profile to make appropriate recommendations.

The trade-off between risk and return

Your attitude to risk is a very important factor in developing an appropriate investment strategy. Risk is the probability that ‘some’ of the money that you invest will reduce or that your investment will produce a return less than expected.

Generally speaking, when investing your money, there is a trade-off between risk and return. The higher the expected investment return, the higher the risk you are likely to be taking. Low expected investment returns generally means that you will be exposed to lower risks. So by taking on more risk you may be able to make more return on your investment. 

The following graph represents the different investor types and the relationship between risk and return.

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Your risk profile also needs to consider the time frame that you wish to invest your money. This is referred to as your ‘investment time horizon’.  We will spend time discussing this with you before we finalise your Investor Risk Profile.

So why doesn’t everyone take risks to maximise their return on investment?

Different people are comfortable with different levels of risk. Some people are very comfortable taking high risks for higher expected returns. Others are prepared to accept lower expected returns because they don’t like being exposed to high levels of risk.

The purpose of the questionnaire you are about to complete is to help us gain an understanding of your tolerance to risk. Understanding your tolerance to risk will help us recommend investments that have the risk and return profile that is most suitable to you. 

However, it is important to note that the outcomes of this questionnaire do not replace the discussion you have with your financial adviser about your tolerance to risk, and the ability to meet your needs and objectives.

How to complete the questionnaire

To complete the questionnaire, please tick the box to the right of the response that best matches your own opinion. The questions include some guidance that you may wish to keep in mind when thinking about your response.

If you are completing this questionnaire with your partner it is important that you answer the questions independently of each other, this ensures that we are able to
make informed investment recommendations.

INVESTOR RISK PROFILE QUESTIONNAIRE

Please select the multiple choice option which best describes you and tally the point score as you go to submit once finished to determine your Likely Investor Type.

SCORE

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QUESTION 1

How much knowledge do you have of investment markets?

SCORE

Which of the following best describes your experience as an investor?

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QUESTION 2

SCORE

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QUESTION 3

An investment you have made recently in a share fund has fallen in value. What do you do?

SCORE

What are you currently looking for in an investment?

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QUESTION 4

SCORE

How important to you is it that that value of your investments grows faster than inflation?

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QUESTION 5

SCORE

How often would you be prepared to tolerate a negative return to receive progressively higher returns?

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QUESTION 6

5

SCORE

If you owned a large amount of shares and the stock market fell quickly by 20%, what do you believe

your natural reaction would be?

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QUESTION 7

4

SCORE

What degree of risk have you taken with your financial decisions in the past?

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QUESTION 8

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SCORE

In the context of investing what best describes your attitude to risk?

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QUESTION 9

SCORE

How would you prefer to invest your money to meet your future investment objectives?

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QUESTION 10

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TOTAL SCORE

ANSWER

Risk Profile Score - please add up manually and enter your score

Thanks for submitting, please proceed to Step 2: Result and Signature

INVESTOR RISK PROFILE RESULTS 

Please select your Likely Investor Type based on your score to reveal your Risk Profile Description.

SCORE

LIKELY INVESTOR TYPE

0 - 10

11 - 15

16 - 21

22 - 27

28 - 33

34 - 40

INVESTOR RISK PROFILE RESULTS (CONTINUED)

Step 2: Investor Profile Result

Record your investor profile score in the following table. Review the profile description in the following pages and decide whether this profile is a true reflection of you. Your advisor will then discuss which profile your score attributes to you, whether you agree or not, and if not, work with you to determine the correct profile. 

ANSWER

Investor Profile Result

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Do you believe that this profile accurately represents your feelings towards risk?

If not, please explain why.

CLIENT DECLARATION

By signing this I declare that:

  • I have read the relevant risk profile description contained within this document.

  • I agree to and understand the AGREED RISK PROFILE noted above.

Thanks for submitting!