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Risk Attitude Profiling Questionnaire - introduction

Use our risk profiler to help give you an idea of your clients' risk attitude and see which of our suggested investment choices might meet their needs.

Please note:

The Risk Attitude Profiling Questionnaire was updated on 6 June 2014 which means there will be occasions when some of your clients are now categorised with a different risk profile even though their responses have not changed. The questionnaire was previously updated on 3 April 2013.

If you have any questions on the Risk Attitude Profiling Questionnaire please contact investmentmarketing@scottishlife.co.uk

Risk Profiler

Answer 12 simple questions to give you an idea of your client's attitude to risk and generate a report.

Start the questionaire

The more risk a client is willing to take with their investments, the higher their potential return - but the greater their chance of loss. Lower risk investments on the other hand offer greater security but lower potential returns.

Risk tolerance

Your clients' risk tolerance will depend on their financial circumstances and goals. Financial risk tolerance can be split into two parts:

Risk capacity - the ability to take risk

This relates to their financial circumstances and their investment goals. Generally speaking, a client with a higher level of wealth and income (relative to any liabilities they have) and a longer investment term will be able to take more risk, giving them a higher risk capacity.

Risk attitude - the willingness to take risk

Risk attitude has more to do with the individual's psychology than with their financial circumstances. Some clients will find the prospect of volatility in their investments and the chance of losses distressing to think about. Others will be more relaxed about those issues.

Client questionnaire

Download a copy of the questionnaire to complete with your clients offline.

Download questionnaire

Our Risk Profiler

Our risk profiler helps give you an idea of your clients' risk attitude. Once you understand this, it is easier to see which investment options are more suitable for them.

A full explanation of the underlying methodology used in the risk questionnaire is available in the 'Risk Attitude Profiling Questionnaire Factsheet'.

Click a on a category heading to expand the description:

Very Cautious

Very Cautious investors typically have very low levels of knowledge of investment matters and very limited interest in keeping up to date with investment issues. They are unlikely to have experience of investment having only saved into bank accounts.

In general, Very Cautious investors prefer knowing that their capital is safe rather than seeking high returns. They are not comfortable with the thought of investing in the stock market and would rather keep their money in the bank.

Very Cautious investors can take a long time to make up their mind on investment matters and will usually suffer from severe regret when their investment decisions turn out badly.

Cautious Investors

Cautious investors typically have low levels of knowledge about investment matters and limited interest in keeping up to date with investment issues. They may have some limited experience of investment products, but will be more familiar with bank accounts than riskier investments.

In general, cautious investors do not like to take risk with their investments. They would prefer to keep their money in the bank, but may be willing to invest in other types of investments if they are likely to be better for the longer term.

Cautious investors can take a relatively long time to make up their mind on investment matters and can often suffer from regret when investment decisions turn out badly.

Moderately Cautious

Moderately Cautious investors typically have low to moderate levels of knowledge about investment matters and quite limited interest in keeping up to date with investment issues. They may have some experience of investment products, but will be more familiar with bank accounts than riskier investments.

In general, moderately cautious investors are uncomfortable taking risk with their investments, but can be willing to do so to a limited extent. They realise that risky investments are likely to be better for longer-term returns.

Moderately Cautious investors can take a relatively long time to make up their mind on investment matters and may suffer from regret when investment decisions turn out badly.

Balanced Investors

Balanced investors typically have moderate levels of knowledge about investment matters and will pay some attention to keeping up to date with investment matters. They may have some experience of investment, including investing in products containing riskier assets such as equities and bonds.

In general, balanced investors understand that they have to take investment risk in order to be able to meet their long-term goals. They are likely to be willing to take risk with part of their available assets.

Balanced investors will usually be able to make up their minds on investment matters relatively quickly, but do still suffer from some feelings of regret when their investment decisions turn out badly.

Moderately Adventurous

Moderately Adventurous investors typically have moderate to high levels of investment knowledge and will usually keep up to date on investment issues. They will usually be fairly experienced investors, who have used a range of investment products in the past.

In general, Moderately Adventurous investors are willing to take investment risk and understand that this is crucial in terms of generating long-term return. They are willing to take risk with a substantial proportion of their available assets.

Moderately Adventurous investors will usually be able to make up their minds on investment matters quite quickly. While they can suffer from regret when their investment decisions turn out badly, they are usually able to accept that occasional poor outcomes are a necessary part of long-term investment.

Adventurous

Adventurous investors typically have high levels of investment knowledge and keep up to date on investment issues. They will usually be experienced investors, who have used a range on investment products in the past, and who may take an active approach to managing their investments.

In general, Adventurous investors are happy to take investment risk and understand that this is crucial in terms of generating long-term return. They are willing to take risk with most of their available assets.

Adventurous investors will usually be able to make up their minds on investment matters quickly. While they can suffer from regret when their investment decisions turn out badly, they are able to accept that occasional poor outcomes are a necessary part of long-term investment.

Very Adventurous

Very Adventurous investors typically have very high levels of investment knowledge and a keen interest in investment matters. They have substantial amounts of investment experience and will typically have been active in managing their investment arrangements.

In general, Very Adventurous investors are looking for the highest possible return on their capital and are willing to take considerable amounts of risk to achieve this. They are usually willing to take risk with all of their available assets.

Very Adventurous investors often have firm views on investment and will make up their minds on investment matters quickly. They do not suffer from regret to any great extent and can accept occasional poor investment outcomes without much difficulty.

Latest update June 2014
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