Risk Assessment Tool

This questionnaire has seven questions with multiple-choice answers, and relies on the accuracy of your answers. Please take your time to understand each question and provide realistic and honest answers. The questionnaire is designed as a guide only to help you determine your tolerance for risk and the asset allocation that most closely corresponds to the risk profile associated with the answers you provide.

The outcome of the questionnaire should not be treated as personalised financial advice or a personal financial plan.

Full Name

Phone

Confirmation to send details to your Adviser, Grant Williamson. For further information you can view our full Privacy Statement here.

Question 1:

What best describes your financial goals for this portfolio?

Protect capital (ignoring inflation) and generate an income stream

Achieve moderate capital growth (inflation protection) and generate an income stream

Growth is the priority; no need for income in the short-term

Aggressive capital growth

None

1 out of 7

Question 2:

You can withdraw capital from the Investment Portfolio at any time. When do you plan to make a withdrawal? (“withdrawal” refers to a large one-off withdrawal of capital, rather than income)

Not now, but within 2 years

In 2 to 5 years

In 6 to 10 years

In 11 to 20 years

More than 20 years

None

2 out of 7

Question 3:

Investing involves a trade-off between return and risk. Investments with higher returns generally have higher risk (i.e. chance of loss). Investments with lower returns generally have lower risk or chance of loss. Which of the following statements best describes your attitude to risk?

I am willing to accept lower returns to limit my chance of loss.

I am willing to accept some risk and chance of loss to achieve higher returns, but I prefer investments with low risk and return.

I am willing to accept moderate risk to achieve higher returns. Minimising risk and maximising return are equally important to me.

I am willing to accept high risk to achieve high returns.

I want to maximise my returns. I am not concerned with risk or seeing my investment balance fall. I accept there will be significant fluctuations in my investment balance.

None

3 out of 7

Question 4

For many investors, the possibility of losing money is a key concern. How do you feel about investment losses?

Investment losses make me very uncomfortable. I check my investments often, so I can sell quickly if they begin to lose money.

Investment losses make me uncomfortable, but not uncomfortable enough to sell immediately. If losses occur over several months, I would probably sell.

Investment losses in the short-term do not bother me. I would wait an entire year before making changes.

I understand that investments can have losses, but also that I have a better chance of reaching my investment goals by sticking to the strategy over the long term. I would not make changes.

None

4 out of 7

Question 5

The following graph shows the results of five hypothetical portfolios over a one-year period. The gold bars show the potential returns, while the dark blue bars show the potential loss each portfolio could experience. (Note: the portfolio with the best potential return also has the largest potential loss.). Which of these funds would you prefer to hold?

Portfolio A

Portfolio B

Portfolio C

Portfolio D

Portfolio E

None

5 out of 7

Question 6

It is often said that your portfolio should not keep you awake at night. This is referred to as the sleep test. By how much could your portfolio fall in value before you would begin to feel uncomfortable:

Any fall in value would make me feel uncomfortable

10%

15%

20% or more

None

6 out of 7

Question 7

For the time period you intend to invest, you:

Seek returns consistent with only the most secure fixed interest issuers

Seek returns that reflect prevailing deposit rates

Seek a modest margin (1-2%) over deposit rates

Seek a clear margin (3-5%) over deposit rates

Seek returns that reflect local and global share market performance

None

7 out of 7

Get the latest news in your inbox.

Information