Risk/Return Profiler

1.   Variation in return +3% to -1%
2.   Variation in return +7% to -3%
3.   Variation in return +11% to -5%
4.   Variation in return +15% to -7% 

Please enter the number of your choice 

1.    I am not prepared to endure temporary paper losses
2.    I could stand temporary losses for up to 6 months
3.    I could stand temporary paper losses for up to 2 years
4.    I could stand temporary paper losses for up to 3 years  

Please enter the number of your choice 

3. Do you want growth or income?

1.    Income ONLY
2.    Mainly Income with a little Growth
3.    Some Income but mainly Growth
4.    Growth ONLY

Please enter the number of your choice 

Timeframe

My/our investment timeframe is:

1.    Short term 1-2 years
2.    Medium term, 3-10 years
3.    Long term, 10 years or more

Please enter the number of your choice 

Based on your answers we estimate your Risk Profile as:

Your investment risk/return profile is:     

What is Investment Risk?
The variability of returns is investment risk.  It is important to realise that returns do fluctuate, even fixed interest.  At times there may even be negative returns.

Investment Sector	Historical Average Real Rates of Return (%)	Volatility  (or investment risk)
Cash	0.0%-1.0%	+/- 4.4%
Fixed Interest	1.0%-1.5%	+/- 7.1%
Property	2.0%-3.0%	+/- 3.8%
Equities	5.0%-6.0%	+/- 21.2%
Small Companies shares	8.0%-9.0%	+/- 35.2%
Managed Futures	8.0%-10.0%	+/- 20.0%

Real Rates of return equals the declared return less the effect of inflation. The volatility figure represents the amount that returns may be expected to differ from the average in any one year. For example, property returns can be expected to be between –(1.8%) and 6.8% the majority of the time.

For more information on this topic refer to:
Portfolio Construction 

Disclaimer:
Before making an investment decision on the basis of this Risk Profiler, you need to consider, with or without the assistance of a financial adviser, whether the decision is appropriate having regard to your individual investment objectives, financial situation and personal needs.
The Risk Profiler is a simple tool based on limited information and as such should not be relied on solely when making investment decisions.

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