Risk profiler

 When answering the following questions, keep in mind that with superannuation-type investments in most cases you will not have access to your money until you retire.

Select the most suitable answer for each of the following questions or statements -

1. Will you need access to your funds during the term of the investment?
(a) Yes
(b) No
2. In how many years do you plan to draw on your funds? (If, at that time, you intend to roll your funds into a pension, add another 10 years to this estimate.)
(a) Parking (less than 1 year)
(b) Short term (1-2 years)
(c) Medium term (2-5 years)
(d) Medium-long term (5-7 years)
(e) Long term (greater than 7 years)
3. Inflation erodes the value of your savings. Growth investing can counter the eroding effect of inflation but will expose you to the risk of short-term losses.
(a) I am comfortable with this trade-off to beat inflation
(b) I am conscious of the risks inflation presents, but would prefer a middle ground that limits losses
(c) Inflation may erode my savings but I have no tolerance for loss
4. Which of the following risk/return scenarios would you be most comfortable with?
(a) Low risk/return (maximum return 6% pa, minimum return 3% pa)
(b) Moderate risk/return (maximum return 8% pa, minimum return -5% pa)
(c) Above average risk/return (maximum return 12% pa, minimum return -10% pa)
(d) High risk/return (maximum return 20% pa, minimum return -25% pa)
5. What is the most aggressive investment you have ever made?
(a) Shares, technology fund, smaller companies fund
(b) Managed funds
(c) Investment property
(d) Own home
(e) Cash management trust
6. What would you do if your investment dropped in value from an initial $50,000 to $42,500?
(a) Move the entire investment to cash
(b) Move some of the investment to cash
(c) Do nothing
(d) Buy more of the investment
7. If you were investing in a share portfolio, which of the following would suit you best?
(a) A portfolio of potentially high-returning shares whose value could rise or fall dramatically
(b) A blue chip portfolio that pays regular dividends
(c) A mixture of (a) and (b)
(d) I am not interested in shares