Risk profiler

When it comes to investing, we all have different attitudes towards risk. Whether investing in shares, property, fixed interest or cash you should carefully consider the level of risk involved in each investment and how you feel about that risk. For instance, you should consider how comfortable you are with the possibility of losing money or that the returns on your investments could fluctuate widely from year to year.

It will:

• Help you understand how you feel about risk
• Provide an illustration of how, given a particular risk profile, you could choose to allocate the money you have available for investment between the various general asset classes (i.e. shares, property, fixed interest and cash).

What is a Risk Profiler?

One of the keys to successful investing is knowing yourself, knowing what you want to achieve and when you want to achieve it.

Another key to investing is understanding the fundamental risk and return relationship - that the more risk you take, the higher your returns are likely to be in the long term. And the higher the long-term returns, the more volatility you may have to endure in the short term.

The BT Risk Profiler draws these factors together by helping you understand how you feel about risk. It provides guidelines that may help you determine how to allocate the funds you have available for investing among the major asset classes (i.e. shares, property, fixed interest and cash).

What Risk Profilers do and don't do

A risk profiler is a tool that can assist you clarify your understanding of your tolerance to risk.

It does not provide you with financial advice about any particular financial product or class of financial product. Rather, it gives you an insight about how people with certain risk profiles may choose to allocate their funds available for investing among the major asset classes.

The calculations you are able to carry out using the Risk Profiler are for general illustration purposes only, based on the limited inputs you have given and assumptions built into the calculator. A risk profiler is not a substitute for a detailed financial plan. A risk profiler does not take into account all your individual investment objectives, existing financial situation or particular needs, nor does it help you to select financial products or strategies that suit your needs and your risk-return preferences. All these should be considered before making any investment decision.

You should also consider whether the results of the Risk Profiler are appropriate, bearing in mind all aspects of your individual financial situation. This may include existing financial commitments and other financial assets you own. To the extent that this risk profiler does contain general advice, you should read the relevant Financial Services Guides (FSGs) for the BT Financial Group. For a copy, simply click on the Disclosure Documents link at the bottom of this page and refer to your area of interest - "Investments", "Superannuation", "Margin Lending" or "Wrap".

The importance of obtaining professional advice

Before making any investment decision, we recommend that you speak with a financial adviser who can make a detailed assessment of your financial situation, help you define your investment goals, and select financial products and strategies that suit your risk and return preferences.