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How can I determine my investor risk profile? What is Investor Risk Profile? All investors have differing attitudes towards risk. When it comes to investing, it is important to consider your risk profile or tolerance carefully
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Investor Risk Profile
How can I determine My Investor Risk Profile?
Investor Risk Profile
What is Investor Risk Profile?
All investors have differing attitudes towards risk. When it
comes to investing, it is important to consider your risk
profile or tolerance carefully, including how comfortable
you are with the possibility of losing money, or that
returns on your investments could vary widely from year
to year. Understanding your personal risk tolerance will help
you choose an appropriate asset allocation.
Investor Risk Profile
How can I get My Investor Risk
Profile?
Answering a few simple questions can help
you to determine an investment mix that's
appropriate for your needs.
These questions are about:
Investment Experience, Age and
Income, Risk Tolerance, Investment
Timeframe, Liquidity or Cash
Requirements,…
Investor Risk ProfileDefinition of existing Risk Profiles in T-Advisor
There are 5 different risk profiles in T-Advisor.
I. Very Conservative - portfolios managed to achieve targeted reasonable
return at almost non risk.
This portfolio stakes roughly most of its assets in short term fix income and
cash. This very conservative portfolio's emphasis on inflation
protection is also notable.
Investor Risk Profile
Definition of existing Risk Profiles in T-Advisor
II. Conservative - portfolios managed to achieve targeted reasonable return at
a minimal risk of loss. Because capital preservation and stability are likely to be
key goals, this portfolio stakes roughly most of its assets in bonds and cash and
the remainder in stocks. This conservative portfolio's emphasis on inflation
protection is also notable. That's because as you add fixed-rate investments,
inflation will gobble up more and more of your purchasing power.
Investor Risk Profile
Definition of existing Risk Profiles in T-Advisor
III. Moderate - portfolios managed to achieve growth at reasonable risk of
loss. It could be the accumulating portfolio or one making modest distributions.
It is best for people whose life circumstances make them somewhat cautious.
Investors will have a time horizon of 5 to 10 years and choose to diversify
across both aggressive growth-oriented investments and more conservative
interest-earning investments. They emphasize income over growth. Moderate
investors are medium risk investors.
Investor Risk Profile
Definition of existing Risk Profiles in T-Advisor
IV. Dynamic - portfolios managed to achieve growth. It often has new
money being added regularly or can be drawn from on a discretionary basis.
Investors in this risk profile can tolerate a fair level of fluctuations in the
value of you investment in anticipation of possible higher returns.
Investor Risk Profile
Definition of existing Risk Profiles in T-Advisor
IV. Aggressive - Aggressive investors are willing to risk losing some
money from time to time for the potential of making greater returns in the
long run.
Aggressive investors have a time horizon of more than 10 years.
Their focus is on wealth creation.
Aggressive investors are high risk investors.