About this questionnaire
This questionnaire aims to uncover your attitude to investing, your understanding of financial markets and how you may react during certain investment market and economic conditions. The following questions help us to understand your tolerance for financial risk. The information gives us an understanding of your investment profile and helps us to understand what investment mix will be appropriate to achieve your financial goals.
1. How much knowledge do you have of investment markets?
I don’t follow what goes on in the market.
I know that returns can vary from year-to-year.
I understand that different sectors have different return and risk ranges, as I try to keep informed.
2. What are you currently looking for from an investment (and/or your superannuation fund)?
I want a regular income and/or want to protect my capital.
I want a mixture of capital growth and income from my investment.
I am looking to maximise my investment balance and generate long-term capital growth.
3. How long are you planning to invest the majority of your money (or superannuation) for before spending it (and/or being able to access the benefits under applicable relevant legislation)?
Less than 2 years.
2 to 4 years.
4 to 7 years.
More than 7 years.
4. An investment you have made has fallen in value by 10%, what would you do?
Sell the investment immediately so you don’t lose any more money.
Do nothing because you feel that it will rise in value again.
If you can, put in more money now while values are down. You feel you’ll get a bargain.
5. Will you be able to meet your future income needs if you invest all of your money (and/or superannuation) in cash and term deposit investments that generate a return of 2% to 3% per year (taking into account inflation reducing your purchasing power over time)?
6. How much of your investment funds and/or superannuation do you currently hold (or are willing to hold) in growth investments (e.g. shares or property)?
None: I have invested in cash and fixed income.
Up to 35%: I think I hold a "Capital Secure" portfolio.
35% to 60%: I think I hold a "Conservative" portfolio.
61% to 80%: I think I hold a "Balanced" portfolio.
Over 80%: I think I hold a "Growth" portfolio.
7. When considering that risk is generally related to return, what return/risk range below most appeals to you?
An average return of less than 3% per year, with no chance of a negative return.
An average return of 3% to 4% per year, with the possibility of a negative return every 10 years.
An average return of 4% to 6% per year, with the possibility of a negative return every 7 years.
An average return of 6% to 8% per year, with the possibility of a negative return every 4 years.
An average return of more than 8% per year, with the possibility of a negative return every 3 years.
8. How would you prefer to invest your money (or superannuation) to meet your future investment objectives?
I prefer to invest in a guaranteed arrangement.
I prefer investments that show steady growth.
I prefer investments with the highest potential returns (and accept that these are the most volatile).
9. Would you tolerate short-term reductions in the value of your investment balance on the basis that you expect higher long-term returns?
No, I have no tolerance for volatility in investment returns.
Yes, provided the funds I needed for my living expenses were secure.
Yes, I understand that volatile investments have historically provided the best long-term returns.
10. What degree of risk have you taken with your financial decisions in the past?
Very small (e.g. you have only ever invested in cash and fixed income).
Small (e.g. you have mainly invested in cash and fixed income, but may have inherited some shares).
Not Applicable (e.g. you have never invested previously other than buying a home to live in).
Medium (e.g. you have previously invested in shares and/or purchased an investment property).
Large (e.g. you borrowed 80% or more to purchase an investment property and/or share portfolio).
Please select your investment preferences from the options below.
Easy To Manage
Risk Profile Score
Suggested Risk Profile: Secure
This portfolio focuses entirely on the preservation of capital. As such the return is likely to be low and consistent compared with the other risk options offered. The portfolio is restricted in its ability to reduce taxable income or the tax effectiveness of that income. It is not an appropriate investment option for medium to long-term investors seeking capital growth.
Suggested Risk Profile: Defensive
This is an income-focused portfolio that has a small exposure to growth assets. The main emphasis is on generating income, with some capital risk in order to achieve overall portfolio growth. It is expected to have a low fluctuation in short-term value, with some small shorter-term capital risk. The income generated by the portfolio may have a small tax benefit from some share dividend franking credits. It is suited to an investor who either seeks a high level of income or has a relatively short investment time frame.
Suggested Risk Profile: Conservative
For investors who are seeking an income stream with some capital growth attached. It has a high exposure to fixed income securities, but also includes exposure to share and property markets. It is suited to medium-term investors who are seeking a reasonable degree of capital stability, but who also want to protect their assets from inflation. Some tax relief on income may be available from franking credits.
Suggested Risk Profile: Balanced
Using a slightly higher exposure to growth assets than income assets, this portfolio is expected to have lower short-term fluctuations in value than the other growth-based investment portfolios. Its aim is to produce capital growth in a medium- to long-term time frame. It has a “balanced” exposure to shares, property and fixed income assets, while the income generated by the portfolio may be partially tax effective.
Suggested Risk Profile: Growth
A growth-oriented portfolio that is best suited to long-term investors. A small income exposure should slightly reduce the shorter-term fluctuations of the portfolio’s value. It is best suited to a long-term investor who can accept some investment risk over the long-run. The income stream may be partially tax effective and the portfolio has a high exposure to share and property to provide long-term investment growth.
Suggested Risk Profile: High Growth
A 100% growth based portfolio with no exposure to income assets. It has a strong emphasis on maximising capital growth over the long term. The portfolio is likely to produce a minimal, tax effective income. Investors should expect high short-term fluctuations in values and a higher chance of capital loss. However, they are prepared to accept this as a trade off in achieving their long-term investment objective.
Do you think the suggested risk profile above accurately summarises your investment preferences?
If no, please provide further details why you answered this way?
Should be Empty: