Risk Profile Questionnaire

  • Risk Profile Questionnaire

  • The Wealthpoint risk profile questionnaire has been designed to help your financial adviser assess your risk profile with regards to your investments. The results of this questionnaire will be used by your adviser together with other information regarding your personal circumstances to develop an investment recommendation that is appropriate for you.

    Determining your risk profile is the first step to take before choosing the best investments for your financial goals. Risk profiling is a process of finding the right level of investment risk by balancing your risk tolerance and risk capacity.

    Risk tolerance relates to the amount of market risk, such as volatility or market ups and downs, an investor can tolerate in order to achieve their financial goals. For investors with a low risk tolerance, investments will be made more conservatively and will include low-risk investments which generally have a lower return.

    Factors that influence risk capacity include timeline – generally more risk can be taken if the individual has more time to invest and is less reliant on the investment for funding their lifestyle.

  • Date*
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  • Please Note

    This tool helps you determine your risk profile and choose the investment option that best suits your risk profile. It should be treated as a guide only and not as personal investment or financial advice. Wealthpoint accepts no responsibility for the fund you choose.

  • Risk Tolerance Assessment

  • How would you describe your own experience as an investor?*
  • When deciding on an investment, business opportunity or even a change in your career how would you describe your attitude to risk?*
  • To earn a return above Term Deposits you will need to hold investments that go up and down in value. How important is it to you to protect your capital and limit the possibility of any fall in value?*
  • If you owned a large investment and the value of that investment fell by 20%, what would your likely reaction be?*

  • Risk Capacity Assessment

  • How long are you planning to have your money invested for?*
  • Over the next 10 years, will you regularly contribute additional money into your investment portfolio, or will you regularly withdraw some money to spend or use?*
  • What percentage of your personal spending do you expect to finance from your investment portfolio over the next 10 years?*
  • Imagine you had an unexpected expense next year that amounted to a 1/3 of your total portfolio value. How do you think your lifestyle now or in the future would be impacted?*

  • Overall Risk Assessment

  • Your Risk Profile Result

    Risk Capacity Score {capacity_total}
    Risk Tolerance Score {tolerance_total}
    Indicative Risk Profile
    {risk_profile}

    This outcome is based on the combination of your risk capacity and risk tolerance scores.

  • Your overall risk profile, and therefore an appropriate investment strategy is a function of your tolerance and capacity to take risk.

    While this will assist your adviser to recommend a suitable investment strategy to you, there will likely be other considerations that are important to ensure your investments meet your financial goals.

    To determine your overall risk profile, your total risk capacity and total risk tolerance scores should be used in combination in the table below.

    For example, if your total risk tolerance score = 15, this falls in the row labelled 14-17. If your total risk capacity = 17, this falls in the column labelled 14-17. The appropriate risk profile, where row 14-17 and column 14-17 meet is Balanced.

  • Risk Capacity
    Risk Tolerance
      0-9 10-13 14-17 18-21 22-25
    18-20 Cash Moderate Balanced Growth Aggressive
    14-17 Cash Moderate Balanced Growth Growth
    10-13 Cash Moderate Balanced Balanced Balanced
    6-9 Cash Moderate Moderate Moderate Moderate
    0-5 Cash Cash Cash Cash Cash
  • Risk Profile Description % Held in Growth Assets
    Cash You have a very cautious approach to investing and want to take no risk to ensure capital preservation 0%
    Moderate

    You require capital protection and are prepared to take only moderate price variations to achieve a return that will exceed inflation

    		 28% - 46%
    Balanced You require some capital stability, but are prepared to accept some volatility in exchange for the potential of a higher return 47% - 66%
    Growth You are investing for the long-term and prefer to invest in more growth assets to achieve capital growth over that time while accepting that there may be a high level of volatility in your portfolio to achieve this 67% - 87%
    Aggressive You are a long-term investor and security of capital is secondary to the potential for wealth accumulation. You are comfortable investing mostly in growth assets while accepting significant market volatility 88% - 100%
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