Adviser > Investment for Advisers > Tools > Risk Attitude Profiling Questionnaire
Risk Attitude Profiling Questionnaire
Complete the questionnaire to confirm how closely your clients agree with each statement about their current situation, feelings and attitude to risk.
How it works
- Confirm how closely your clients agree with 12 statements about their current situation, feelings and attitude to risk.
- The answers are converted into a score between 1 and 100.
- The score is mapped to one of our seven risk attitude categories. These cover the full range of risk profiles, from very cautious to very adventurous.
You can then generate a report which confirms your client's answers and defines their attitude to risk.
Your client's risk attitude is based upon the answers given to our 12 risk profiling questions. These answers have been converted into a score between 0 and 100 that has been mapped to one of our seven risk categories.
Adviser Details
Adviser Name:
Company:
Client Details
Client Name:
DOB: Retirement Age:
Results
Attitude to risk:
The chart on the right shows where their attitude to risk fits:
About Very Cautious Investors
Very Cautious investors typically have very low levels of knowledge of financial matters and very limited interest in keeping up to date with financial issues. They are unlikely to have experience of investment beyond bank and building society 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 stockmarket and would rather keep their money in the bank.
Very Cautious investors usually avoid anything that looks like a gamble. They can take a long time to make up their mind on financial matters and will usually suffer from severe regret when their decisions turn out badly.
About Cautious Investors
Cautious investors typically have low levels of knowledge about financial matters and limited interest in keeping up to date with financial issues. They may have some limited experience of investment products, but will be more familiar with bank and building society accounts than other types of 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 would be willing to invest in other types of investments if they were likely to be better for the longer term.
Cautious investors prefer certain outcomes to gambles. They can take a relatively long time to make up their mind on financial matters and can often suffer from regret when decisions turn out badly.
About Moderately Cautious Investors
Moderately Cautious investors typically have low to moderate levels of knowledge about financial matters and quite limited interest in keeping up to date with financial issues. They may have some experience of investment products, but will be more familiar with bank and building society accounts than other types of investments.
In general, moderately cautious investors are uncomfortable taking risk with their investments, but would 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 typically prefer certain outcomes to gambles. They can take a relatively long time to make up their mind on financial matters and may suffer from regret when decisions turn out badly.
About Balanced Investors
Balanced investors typically have moderate levels of knowledge about financial matters and will pay some attention to keeping up to date with financial matters. They may have some experience of investment, including investing in products containing risky 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 at least part of their available assets.
Balanced investors will usually be prepared to give up a certain outcome for a gamble provided that the potential rewards from the gamble are high enough. They will usually be able to make up their minds on financial matters relatively quickly, but do still suffer from some feelings of regret when their decisions turn out badly.
About Moderately Adventurous Investors
Moderately Adventurous investors typically have moderate to high levels of financial knowledge and will usually keep up to date on financial 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 on 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 take gambles where they see the potential rewards as being attractive. They will usually be able to make up their minds on financial matters quite quickly. While they can suffer from regret when their decisions turn out badly, they are usually able to accept that occasional poor outcomes are a necessary part of long-term investment.
About Adventurous Investors
Adventurous investors typically have high levels of financial knowledge and keep up to date on financial 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 on 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 readily take gambles where they see the potential rewards as being attractive. They will usually be able to make up their minds on financial matters quickly. While they can suffer from regret when their decisions turn out badly, they are able to accept that occasional poor outcomes are a necessary part of long-term investment.
About Very Adventurous Investors
Very Adventurous investors typically have very high levels of financial knowledge and a keen interest in financial matters. They may be considered as 'hobby investors'. 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 can easily be persuaded to take a gamble rather than a certain outcome and enjoy gambling as an activity. They have firm views on investment and will make up their minds on financial matters quickly. They do not suffer from regret to any great extent and can accept occasional poor outcomes without much difficulty.
Agreement
Scottish Life do not have a Governed option designed for investors with this risk attitude. We do however have a range of funds that invest in assets such as deposit and bonds. For further information regarding our fund range please visit www.scottishlife.co.uk/Investment.
Scottish Life do not have a Governed option designed for investors with this risk attitude. We do however have a range of funds that invest in assets such as UK and Global equities. For further information regarding our fund range please visit www.scottishlife.co.uk/Investment.
Suggested Investment Choices
Within our Governed Range we offer a number of options that are designed to meet your clients attitude to risk.
Lifestyle Range
Tracker - RISK GRADE TRACKER
Active - RISK GRADE ACTIVE
These lifestyle strategies are designed to reflect the risk profile of the client each with ongoing governance. As the client nears retirement they automatically switch from higher risk to lower risk Governed Portfolios.
The Tracker version invests the equity portion of each portfolio in a global equity tracker fund automatically blended between UK and overseas equities as part of the governance review process.
The Active version invests the equity portion of each portfolio in a specialist manager of manager fund where the UK/overseas split will be decided as part of the governance review process.
Governed Portfolios
The Governed Portfolios provide a range of suitable asset allocations depending on a client's attitude to risk and term to retirement.
Next steps
Important Information
- The suggested risk category is based on your client's responses to the questionnaire.
- The category descriptions are based on our own analysis and may differ from those provided by other companies.
- Investment choice should not be based on risk attitude analysis alone as other factors need to be taken into consideration.
- We recommend that financial advice is given before your client makes any investment decisions.
- The report produced is designed to assist you in determining your client's attitude to risk. The report should not be construed as Scottish Life giving advice. Scottish Life will not be held responsible for any advice or recommendations made on the back of these results.
- A full explanation of the underlying methodology used in the risk questionnaire is available in the 'Risk Attitude Profiling Questionnaire Factsheet'.
For professional advisers only