Choosing to invest is exciting, but it can also feel overwhelming, especially if you’re a first-time investor. To begin with, how do you choose an investment profile to suit your needs?
A risk profile questionnaire is a valuable tool used in determining an individual’s willingness and ability to take on risk in their investment decisions. These questionnaires typically consist of questions about the individual’s financial situation, investment goals, time horizon, and risk tolerance.
By answering these questions, the investor can gather insight into their comfort level with different levels of risk and their expectations for returns.
The questionnaire then categorises investors into specific risk profiles, which are often classified as conservative, moderate, or aggressive.
The risk profile serves as a guide to help an individual determine what type of investor they are.
For example:
Investors with a low-risk tolerance who prioritise capital preservation and prefer stable, steady returns. They are typically more risk-averse and may lean a larger allocation of their portfolio towards investments like bonds and cash equivalents.
Investors with a balanced approach, seeking a mix of capital preservation and growth. They are willing to accept some fluctuations in their investments to achieve moderate returns. A balanced portfolio may include a combination of stocks and bonds.
Investors who are comfortable taking on higher levels of risk in pursuit of higher potential returns. They have a longer investment horizon and are more inclined to invest a larger allocation into growth-oriented assets, such as stocks.
The risk profile questionnaire acts as a personalised roadmap, helping individuals understand their risk preferences and guiding them towards an investment strategy that aligns with their comfort level and financial objectives. This way, investors can make more informed decisions and build portfolios that suit their unique circumstances and aspirations.
Please note:
The risk profile questionnaire is designed to assist you in understanding your risk tolerance and preferences. However, please be aware that the final selection of a portfolio is ultimately at the investor’s discretion. The results of this questionnaire should not be considered as personalised financial advice.
As part of our commitment to enhancing your investment experience, we have linked to the Finmasters Investment Risk Tolerance Assessment.
Simply click the link below and complete the questionnaire to gather a better understanding of your risk tolerance and investment suitability.
Important:
You are being directed to an external site that hosts a risk profiler.
The FinMasters Investment Risk Tolerance Assessment:
• is a tool for educational purposes only and is not, and should not be construed as, financial advice.
• is not intended to be relied on for the purpose of making a decision in relation to financial products – you should consider your financial situation and needs before making any investment decision.
Medici Invest Pty Ltd accepts no liability for the accuracy or completeness of the results of the profiler or for any loss arising from the use of the profiler.
Medici Invest is distributed by Lanteri Partners Financial Management Pty Ltd (ACN 060 748 594, AFSL 239 127) and administered by OpenInvest Limited (ACN 614 587 183) via the OpenInvest Portfolio Service (ARSN 628 156 052). This website provides factual information about the service, and any general advice contained does not take into account your objectives, financial situation or needs. Before making any investment decision, please review the PDS and Target Market Determination available at www.medici.openwealth.net.au/key-documents/. Should you require assistance in determining whether an investment in the service is right for you, you may wish to seek personal advice from an appropriately licensed financial adviser.
