Find Out What Type of Investor you are
Do you want to improve your finances? You can start your investment and financial journey by taking this quiz to understand your investment risk tolerance.
Do you want to improve your finances? You can start your investment and financial journey by taking this quiz to understand your investment risk tolerance.
Do you want to improve your finances? You can start your investment and financial journey by taking this quiz to understand your investment risk tolerance. Knowing your tolerance is one of the fundamental considerations when planning your investment strategy, either alone or in consultation with a financial services professional.
Knowing your tolerance is one of the fundamental considerations when planning your investment strategy, either alone or in consultation with a financial services professional.
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In general, the score that you receive on the Risk Tolerance Quiz can be interpreted as follows:
19 or below = Low-risk tolerance (i.e., Defensive investor)
20 to 24 = Below-average risk tolerance (Conservative investor)
25 to 29 = Average/moderate risk tolerance (Balanced Investor)
30 to 34 = Above-average risk tolerance (Growth Investor)
35 and above = High-risk tolerance (i.e., aggressive investor)
Defensive Investor
Risk must be very low, and you are prepared to accept lower returns to protect your capital. The adverse effects of inflation will hurt your investment value, but protecting your capital is more important than getting an increase.
Types of investments generally include – low-interest savings accounts or cash and have a short time frame of less than 1 year if some or all the funds need to be accessed for use.
The average 10-year return is likely 0-2% per annum.
Conservative Investor
You are seeing better than basic returns, but risk must be low, typically an older investors seeking to protect their wealth without the need to achieve a balanced return.
May have a larger portfolio to use over the long term. Types of investments generally include – a mix of cash, bonds, and fixed interest like term deposits and about 30% invested in property, commodities, or stocks/shares.
The average 10-year return is likely to be between 2-3% per annum. Usually invested for 1-3 years if some or all the funds need to be accessed for use.
Balanced Investor
You want a balanced portfolio to work towards medium to long-term financial goals. You require an investment strategy which will cope with the effects of inflation.
Managed and calculated risks are acceptable for increased tax-free capital growth return potential. Types of investments generally include – a mix of cash, bonds, and fixed interest like term deposits and about 70% invested in property, commodities, or stocks/shares.
The average 10-year return is likely to be between 5-7% per annum. Usually invested for 3-5 years if some or all the funds need to be accessed for use.
Growth Investor
You probably earn sufficient personal income to invest most funds for tax-free capital growth. Also prepared to accept the short-term ups and downs for increased growth potential.
Accept higher volatility and moderate risks. Your primary concern is accumulating assets over the medium- to long-term exit strategy. Types of investments generally include – a small mix of cash, bonds, and fixed interest like term deposits and about 85% invested in property, commodities, or stocks/shares.
The average 10-year return is likely between 7-9% per annum. Usually invested for 5-10 years if some or all the funds need to be accessed for use.
Aggressive Investor
You’re prepared to compromise portfolio balance to pursue more significant long-term tax-effective returns. Your investment choices are diverse but carry a higher level of risk.
Maximised tax-free capital growth return potential is more important than the return of investment due to the long-term timeline exit strategy. Types of investments generally include – a small mix of cash, bonds, and fixed interest like term deposits and about 99% invested in property, commodities, or stocks/shares.
The average 10-year return is likely between 9-11% per annum. Usually invested for 10 years + if some or all the funds need to be accessed for use.
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