Risk Profile Questionnaire Begin by filling in your name Our risk profiler will help you to:Decide whether to take any investment riskDiscover your appetite for investment riskRecord your savings & investment goalsConsider how long you are likely to invest forExplore your ability to tolerate investment losses emotionally and financiallyRelate these results to a range of risk-rated portfoliosDecide on which portfolio best suits your goals First Name Last Name Email Next Step 1: Basic risk Even if you keep all of your money in the bank you are taking some risk – inflation could erode the real value of your savings, or in very extreme circumstances the bank could go bust and you might not get all of your money back, although the risk of this happening is minimal. However, many people choose to make their money work harder by investing in stocks and shares and other assets, generally referred to as “the markets”. Investing in the markets brings many additional risks over keeping cash in the bank, which we refer to as “market risks”. These can result in significant short-term fluctuations in the value of your capital and income, meaning that if money is withdrawn at the wrong time losses may be crystallised. Remember, you can’t always control when you need access to your money. Investors hope to be rewarded for taking additional risks by receiving greater returns over the longer term. With this in mind, are you willing to consider investing in the markets? Yes No Unfortunately, if you are unwilling to consider investing in the market we cannot proceed further with this questionnaire and it is likely that the most suitable risk profile for you is Level 1 – no investment risk. Back Next Step 2: Appetite for risk You have stated that you are willing to consider some market risk, so please now respond to the statements below, which will help to highlight your appetite for investment risk. I associate the word "risk" with the idea of opportunity Yes No Generally, I prefer the safety of keeping my money in the bank Yes No I read the financial pages in the news Yes No I would describe myself as a cautious person Yes No I feel confident that in the long-term I will be rewarded for taking on investment risk Yes No When faced with a financial decision, I think more about potential Losses Gains I would be happy to give up some growth or income on my investments in return for limiting potential losses Yes No The following pictures show returns of three hypothetical portfolios. Based on the images and notes below, which would you generally prefer? On average, Portfolio A grew by a fixed 2% per annum, over a 10 year period, with no fluctuations or losses On average, Portfolio B grew by 5% per annum, over a 10 year period, with a few gains and losses On average, Portfolio C grew by 7% per annum, over a 10 year period, with significant gains and losses Back Next Step 3: Appetite for risk outcomeWe define your appetite for risk as: Portfolio behaviours A range of risk-rated portfolios is shown in the table below. In the upper part of the table, find the portfolio that best matches your appetite for risk, investment timeline and tolerance/capacity for loss for each investment objective. The lower part of the table shows the historical performance of each portfolio in terms of returns, losses and volatility. Whilst these numbers will change in the future, the purpose of the table is to highlight the relationship between risk and reward and help you to decide the sort of risk level that is best for you. We need to look at your ability to cope with investment losses, emotionally and financially. Emotionally, please think about the maximum loss you could tolerate in a single year before you would want to sell the investment. This is your tolerance for loss. Financially, please think about the maximum loss you are capable of absorbing in a single year before you would face financial difficulty. This is your capacity for loss*. Your ability to cope with loss will be the lower of these two and may vary for each investment objective. For example, you may be less concerned about losses on your general savings yet have little ability to cope with loss where an immediate income is required. *Your adviser will analyse your financial circumstances and provide their views on your capacity for loss as part of the financial planning process. For each investment objective, please indicate the maximum loss that you could cope with in a single year: Investing for immediate income Select from Objective not applicable A loss of less than 7.5% A loss of up to 10% A loss of up to 15% A loss of up to 20% A loss of more than 20% Investing for growth, with the option to potentially provide an income in the future (including retirement income). Select from Objective not applicable A loss of less than 7.5% A loss of up to 10% A loss of up to 15% A loss of up to 20% A loss of more than 20% Please explain how a loss at the level selected above, might affect you. For example, how would it affect your standard of living or your ability to meet your normal expenditure? Enter below Back Next Step 4: Risk profile selection Having considered all that we have covered so far, please indicate which portfolio you would feel most comfortable with in relation to each investment objective. There are no right or wrong answers. This process is all about encouraging you to think about these important issues and to help you to express your views. Your adviser will work with you as part of the financial planning process and will ultimately advise you on how much risk they feel you should take. Investing for immediate income Select fromTM Income Strategy Expected minimum investment term for this objective Select from Objective not applicable Less than 3 years 3-5 years 5-7 years 7-10 years More than 10 years Invest for growth, with the option to potentially provide an income in the future (including retirement income). Select from Objective not applicable 1 2 3 4 5 6 Expected minimum investment term for this objective Select from Objective not applicable Less than 3 years 3-5 years 5-7 years 7-10 years More than 10 years Back Next Step 5: Investor experience and preferences With regards to previous investments have you: Select from Never held investments Self-selected own investments Taken advice Self-selected and taken advice Please list the sorts of investments you have held in the past (if any) List below Please describe your previous experience of investment or financial advice: Enter below Are there any ethical, social, environmental or religious issues that you would like us to take into account when looking at your investments? If yes, your adviser will discuss this with you further. Yes No Please record your overall objectives for this pension or investment, i.e. what is its purpose and what do you want it to do for you? Enter below What are your investment objectives? i.e. do you want to manage the investments yourself or have them professionally managed? Please explain why you have decided this. Enter below Is there anything else you would like to add? Enter below There are fundamentally two ways to manage investments. One involves "actively managing" investments to try and either outperform markets, or modify/reduce the risks associated with investing. There is also a chance that these funds will underperform the markets, or carry more risk. The other is known as "passive" or index investing, and aims to capture the returns of markets. There is little chance of either outperformance or underperformance of the markets. Passive investment costs less than active investment. Clients may find one or other approach more appealing, but it is absolutely fine if you have no strong view. Select from I prefer the sound of passive investing I prefer the sound of active investing I prefer the sound of blending both I have no strong views Back Finish Questionnaire Complete Thank you for completing this questionnaire. An advisor will be in touch with you as soon as possible. Home Start the questionnaire again By continuing to browse this site, you agree to our use of cookies. I Understand
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