Risk Profiler

When it comes to investing we all have different attitudes towards risk. Whether investing in shares, property, fixed investment or cash you should carefully consider the level of risk involved in each investment and how you feel about the risk. For instance, you should consider how comfortable you are with the possibility of losing money or that the returns on your investments could fluctuate from year to year.

What is a Risk Profiler?

One of the keys to successful investing is knowing yourself, knowing what you want to achieve and when you want to achieve it. Another key to investing is understanding the fundamental risk and return relationship – It is possible that the more risk you take, the higher your returns could be in the long term, though not guaranteed. In exchange for higher returns, the more volatility you may have to endure in the short term.

The risk profiler used draws these factors together by helping you understand how you feel about risk. It provides guidelines that may help you determine how to allocate the funds you have available for investing among the major asset classes (i.e. shares, property, fixed interest and cash)

Please note that the risk profiler is a guide only and should not be relied upon to make financial decisions. Independent financial advice should be sought.

Risk Profilers Do's and Dont's

A risk profiler is a tool that can assist you and clarify your understanding of your tolerance to risk. It does not provide you with financial advice about any particular product or class of financial product. Rather, it gives you an insight about how people with certain risk profiles may chose to allocate their funds available for investing among the major asset classes.

The calculations you are about to carry out using the risk profiler are for general purpose illustrations only, based on the limited inputs you have given and assumptions built into the calculator. A risk profiler is not suitable for a detailed financial plan. A risk profiler does not take into account all your individual investment objectives, existing financial situation or particular needs, nor does it help you select financial products or strategies that suit your needs and your risk return preferences. All these should be considered before making any investment decision.

Although the risk profiler can be useful in assisting the customer, it is no substitute for a professional adviser who has the experience and knowledge in these areas and who should take into consideration all your current objectives and future aspirations. It should not be used on this basis alone as other factors should be considered.

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