The questionnaire will help you to understand your attitude to investment risk, but it is important to understand that there are limitations.
The risk questionnaire is provided to enable an approximation to your risk tolerance. Please see the limits above, particularly with regards to your stage of life. You may increase or decrease your risk tolerance level as you see fit, otherwise the Money Pouch roboadviser will auto-select a risk category for you based on your answers to the questionnaire.
Your risk score will be calculated automatically. It may be useful to come back and revisit your risk score at the end of each year or as your financial circumstances or life circumstances change, e.g. long standing illness, divorce, loss of job, promotion, inheritance windfall, etc.
The Money Pouch will automatically select a strategy based on your answers to the risk questionnaire. You do not necessarily need to select the same risk level as indicated by the risk questionnaire if, for example, other factors such as your capacity for loss indicate that another category is more appropriate for you, please contact our team. Additionally, the questionnaire is designed to assess your overall investment risk tolerance. You may decide to take more or less investment risk for a particular investment.
Understanding your attitude to investment risk is an important factor in making a decision about investments.
The questionnaire has been designed to measure investment risk tolerance, which is your emotional response to changes in the value of your investments.
Your attitude to investment risk is just one factor you should take into account, so it is essential to have a discussion with our team to consider, amongst other things, your actual ability to withstand changes in the value of your investments (capacity for loss), your financial goals and risks other than investment risk.
The risk questionnaire is not suitable if you are unwilling to take any investment risk. You should contact your local bank and consider a cash only investment if you think that you fall into this category.
Copyright © 2017 TheMoneyPouch