Investment Risk can be described as the potential for actual investment returns to vary from expectations. The higher the level of investment returns you are seeking, the more risk you generally need to be prepared to accept. Not everyone has the same attitude to risk. An Investment Risk Profile is basically a general description regarding an Investor’s attitude to risk.
In order to recommend investments that have the potential to offer a level of return that you desire, at a level of risk that you are comfortable with, it is important that we understand your attitude to risk. The Investment Risk Profile Questionnaire is one tool we use to assist us gain this understanding.
There are no right or wrong answers, as only you can describe how you feel about risk. We may, however, wish to discuss some answers with you if they appear conflicting, or to enable us to gain a better understanding of your requirements. Please feel free to add comments if you wish to clarify your answers, or to discuss your answers with us.
Yes, it is quite likely that your attitude to investment risk will change over time. This may be the result of investment market experience, or changing personal circumstances such as a change in employment status, family members becoming no longer dependent upon you, or receipt of an inheritance or lottery win.
If your attitude to risk changes, your investments may no longer be suitable. You should contact us immediately to arrange a review of your financial plan and investments should you feel your Risk Profile has changed.
No, there are a number of reasons why it may be necessary for you to invest differently that your Risk Profile may suggest. These could include investing more conservatively if you require access to capital in the short to medium term, or investing more aggressively if you have started your investments later in life and have to take on additional risk in an attempt to achieve higher returns to meet your financial objectives.