Risk Profiling

What is Investment Risk Profiling?

Investment risk can be described as the potential for actual investment return to vary from expectations. The higher the level of investment returns you are seeking, the more risk you generally need to be prepared to accept. Not everyone has the same attitude to risk. An Investment Risk Profile is basically a general description regarding an Investor’s attitude to risk.

How will the Risk Profiling Questionnaire be used?

In order to recommend investments that have the potential to offer a level of return that you desire, at a level of risk that you are comfortable with, it is important that we understand your attitude to risk. The Investment Risk Profile Questionnaire is one tool we use to assist us gain this understanding. Each answer is given a point. The total score would suggest the appropriate risk profiling and suitability of service for you. All question are mandatory to answer.

Are there any right or wrong answers?
There are no right or wrong answers, as only you can describe how you feel about risk.

What if the situation described in a question has never happened to me?
The questions are designed to gain a picture of what you would do in such circumstances, regardless of whether you have ever been in them before. Please answer as best you can.

What if I need more information to answer the question?
The questions are designed to see what you would do with limited information. Though in real life you could obtain more information, certainty is a rarity in making financial decisions. Please answer as best you can.

What if none of the choices in a multiple-choice question is my preferred answer?
Some questions give you a limited choice of responses. This is designed to obtain a picture of what you would do given the choices available. Please choose the closest option to how you would respond.

Can my Risk Profile change?
Yes, it is quite likely that your attitude to investment risk will change over time. This may be the result of investment market experience, or changing personal circumstances such as a change in employment status, family members becoming no longer dependent upon you, or receipt of an inheritance.

What should I do if my Risk Profile changes?
If your attitude to risk changes, your investments may no longer be suitable. You should contact us immediately to arrange a review of your financial plan and investments should you feel your Risk Profile has changed.

Do I have to invest according to my Risk Profile?
No, there are a number of reasons why it may be necessary for you to invest differently that your Risk Profile may suggest. These could include investing more conservatively if you require access to capital in the short to medium term, or investing more aggressively if you have started your investments later in life and have to take on additional risk in an attempt to achieve higher returns to meet your financial objectives.

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