Readers, do you know your own (investor) risk profile?

Readers,

 

Want to know your risk tolerance? Then answer the following 10 questions. Circle your answers on the right and total up the score and email back to me. I would feedback my assessment to you.

 

(If you want a honest assessment, kindly total the score for all 10 questions and email to me).

 

Investor Risk Profile

 

The following questions wil help you understand your individual risk tolerance, which in turn will determine the level of your expected returns.

 

Please choose one answer per question and total up your score on the right margin to ascertain your profile.

 

It serves as a guide to establish the kind of investment and trading style as well as products and services that fits you.

 

 

1.	Tell us your investment experience:	Score
a.	I know nothing at all.	0
b.	I have some investment knowledge in shares only.	1
c.	I am reasonably familiar with the basic types of investments, including unit trust, bonds and shares.	3
d.	I am both knowledgable and experienced in investing and I currently hold a broad range of investments	5
2.	Tell us your investment goals:
a.	My money should be safe at all time.	3
b.	I want to earn a stable and regular stream of income. I can accept occasional losses as long as my money is in sound investment.	5
c.	I am looking for the balance of capital growth and regular income. I am willing to accept a fair amount of investment risk.	8
d.	I am willing to take higher risk to achieve higher returns.	10
3.	What percentage of your total net worth do you expect this trade/investment to represent?
a.	1-20%	5
b.	20-50%	3
c.	50-70%	1
d.	70-100%	0
4.	How would you describe your investment style?
a.	Conservative	2
b.	Moderate	5
c.	Fairly aggressive	8
d.	Aggressive	10
5.	What chance is there that you may need to withdraw most or all of this trade/investment earlier than anticipated?
a.	Very low (under 15%)	10
b.	Low (under 25%)	8
c.	Medium (25-50%)	4
d.	High (over 50%)	0
6.	If you purchased an trade/investment and the value dropped by 20% after 3 months, but it still looked like a good investment, you would:
a.	Buy more	15
b.	Hold	10
c.	Not sure	6
d.	Sell	2
7.	In a period of one year, how much of a drop in value of this trade/investment could you tolerate before feeling uncomfortable?
a.	0-5%	2
b.	5-10%	6
c.	10-15%	10
d.	Over 15%	15
8.	Over the next 3-5 years, are you confident that your income will meet your ongoing expenses?
a.	Not sure	0
b.	Not confident	2
c.	Confident	7
d.	Very confident	10
9.	How long do you expect to hold this trade typically?
a.	1-3 months	0
b.	4-9 months	6
c.	10 months – 18 months	8
d.	> 19 months	10
10.	Tell us your age:
a.	Under 30	10
b.	30-39	8
c.	40-54	5
d.	55 and over	2
	TOTAL SCORE

 

 

Martin Wong

Trading Coach

 

Investmatic Management, SoHo, Ara Damansara, Selangor DE, Petaling Jaya 47301, Malaysia


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