Risk Profile Questionnaire

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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 on going recommendations.

Investor Risk Profile

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

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 left 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.

It is important that if you and your partner, co-investor, co-trustee, or co-director have been asked to complete this questionnaire it is important that you each do independently of each other – this ensures that we are able to make investment recommendations that take into account each persons Investor Risk Profile.