Risk Assessment Questionnaire

A questionnaire used in analyzing an investor's risk appetite

As you go through the questionnaire, note down the points in brackets and proceed to the risk assessment summary to find out what type of investor you are.

  1. When you think of the word “risk” what comes to mind first?

               Loss (0) Uncertainty (1) Opportunity (2) Thrill (3)

       2. Have you ever invested in a unit trust before?

              No (0) Yes (1)

      3. Approximately what portion of your total savings will this investment present (reference no.2 above)?

             Over 80% (0)    21-50% (1)    51-80% (2)    0-20%(3)

      4. When making an investment, how long do you plan to hold it for?

              0-1 years (1)   1-2 years (2) 3-5 years(3)   5+ years (4)

      5. Which of the following most accurately describes your general attitude towards investing?

  • In order to minimize fluctuations in my investments, I am willing yo accept lower returns in the long run (1)
  • I am willing to accept possible fluctuations in my investments, in order to earn moderate returns in the long-run (2)
  • I am willing to accept fluctuations in my investments in order to earn above average potential returns over the long run (3)
  • I am willing to accept large and occasionally drastic fluctuations in my investments in order to earn higher potential returns over the long run (4)

      6. If the value of your investment went down by about 20%, what would you do?

  • I would buy more of the investment (1)
  • I would sell some of the investments (2)
  • I would sell all of the investments (3)
  • I would hold on to the investment (4)

       7. When do you plan to begin withdrawing money from your investment?

        0-1 years (1)     1-2 years (2)   3-5 years (3)    5+ years (4)

       8. How would you describe your investment style?

              Conservative (0)    Moderate (1) Aggressive (2)

       9. How do you feel about the following statement? Maintaining the principal of my investment account is more important than achieving significant growth?

              Strongly agree (1)    Agree (2)   Somewhat agree (3)   Disagree (4)

      10. As an investor, during an economic downturn how would you react?

  • I would wait for things to start looking up, and then invest (1)
  • I would quickly sell of my existing investment
  • I would immediately invest or add more money to my investment (3)
  • I would hold all of my investment (4)


Risk Assessment Profile Summary:

a) 5-15 points

Profile: Conservative

Risk Category details:

Conservative investors are investors who want stability and are more concerned with protecting their current investments. A conservative investor is generally seeking to preserve capital and as a trade-off is usually prepared to accept lower investment returns. The money market fund is the ideal product for such investors.

b) 16-25 points

Profile: Moderate

Moderate investors are usually medium term investors who want to protect their capital and achieve some real increase in the value of their investments. This investor is seeking a diversified portfolio with exposure to a broad range of investments sectors. The growth fund is the ideal product for such investors.

c) 26-35 points

Profile: Aggressive

Aggressive investors are long term investors who want high capital growth. Substantial year to year fluctuations in value are acceptable in exchange for a potentially high long term return. An aggressive investor is comfortable accepting high volatility in their capital value, with the risk of short to medium term periods of negative returns and typically will have a long investment objective. The equity fund is the ideal product for such investors.

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