Your risk profile
Selecting the best investments for your investment portfolio depends on factors
such as your age, your financial circumstances and what your financial objectives
are. However, it also depends on your risk profile.
You need to understand your investment risk profile to formulate your investment
strategy and to ensure that the right asset allocation model is used.
If you have undertaken our attitude to risk questionnaire, this will indicate to you
which investment category you fall in, so check out below what this means.
If you have not completed the questionnaire, download the pdf now and check
out your attitude to risk.
Contact Kellands Bristol today so we can help assess your risk profile and what
it means for your optimum asset allocation strategy.
Please Expand/Contract for further info as required.
Very Defensive Investor - risk level 1
A Very Defensive investor is looking for an investment where the capital will not fall in the short term. The return is likely to be the same as a high street deposit account and will not have exposure to any non-cash investments. Therefore the real value of the investment is at risk of being reduced by inflation over the long term.
Defensive Investor - risk level 2
A Defensive investor is looking for an investment where returns are potentially higher than
high street deposit accounts, and is therefore willing to accept a small amount of risk, but where
the capital should not fall in the short term. The Defensive is aware that non-cash investments
might fall in value as well as rise, and that the real value of a cash investment is exposed to being
reduced by inflation over the long term.
Very Cautious Investor - risk level 3
A Very Cautious investor is looking for an investment where the return should be slightly better
than a high street deposit account, accepting that the value of the investment could fall as well as
rise. The Very Cautious investor would feel uncomfortable however if the investments rose and
fell in value very rapidly.
Cautious Investor - risk level 4
A Cautious investor is looking for an investment where the return should be slightly better than
those available from a high street deposit account accepting that the value of the investment could
fall as well as rise. They would feel uncomfortable however if their investments rose and fell in
value very rapidly.
Moderately Balanced Investor - risk level 5
A Moderately Balanced investor is seeking a higher return than is available from a high street
deposit account and is willing to accept a certain amount of fluctuation in the value of the
investments as a result. The Moderately Balanced investor would feel uncomfortable however if
the investments fell in value significantly in any one year.
Balanced Investor - risk level 6
A Balanced investor is looking for a balance of risk and reward, seeking higher returns than those
available from a high street deposit account and willing to accept a certain amount of fluctuation
in the value of their investments as a result. However, they would feel uncomfortable if their
investments were to fall in value significantly in one year.
Moderately Aggressive Investor - risk level 7
A Moderately Aggressive investor is willing to accept a higher level of risk on their investments
in return for higher returns in the long run. They are willing to accept fluctuation in the value of
the investments as a result. They would feel comfortable if their investments fell in value in more
than one quarter in any one year, and would see this as a time to ride out the storm rather than a
time to purchase more.
Aggressive Investor - risk level 8
An Aggressive investor is willing to accept a higher level of risk on their investment, in return
for, higher returns in the long run. They are willing to accept a good amount of fluctuation in the
value of their investments as a result. They would feel comfortable if their investments fell in
value more than one quarter in one year and would see this as a time to ride out the storm rather
than a time to purchase more.
Speculative Investor - risk level 9
A Speculative investor is willing to accept a much higher level of risk on their investments in
return for higher returns in the long run. They are willing to accept what might be significant
short term fluctuation in the value of their investments as a result. They would feel comfortable if
their investments fell in value in more than one quarter in any one year, and might well see this as
an ideal time to purchase further investments.
Very Speculative Investor - risk level 10
A Very Speculative investor is willing to accept a very high level of risk on their investments
in return for potentially high returns in the long run. They are willing to accept what might be
significant short term fluctuation in the value of their investments as a result, and will not seek
to spread their risk through diversification across markets. They would feel comfortable if their
investments fell in value in more than one quarter in any one year, and might well see this as an
ideal time to purchase further investments.
