UNDERSTANDING RISK PROFILES

SMART PEOPLE MAKE SMART PLANS.

A risk profile is an evaluation of willingness to take risks, in determining a proper investment asset allocation considering the threats to which a portfolio is exposed.
We us the risk profile as a way to mitigate potential risks and threats for our clients investments.

Risk Profile 4
MODERATE

In general, Moderate 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 a high proportion of their available assets.

Moderate investors typically have a good level of knowledge about financial matters and they usually have some experience of investment, including investing in products containing higher risk assets such as equities.

Moderate investors will usually be able to make up their minds on financial matters relatively quickly, but still su er from some feelings of regret when their decisions turn out badly.

Risk Profile 6
ADVENTUROUS

In general, Adventurous investors are looking for a high 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

Adventurous investors typically have high levels of financial knowledge. They often have substantial amounts of investment experience and may have been active in managing their investment arrangements.

Adventurous investors typically will make up their minds on financial matters quickly. They do not su er from regret to any great extent and can accept occasional poor returns without much difficulty

Risk Profile 5
DYNAMIC

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

Dynamic investors typically have significant levels of financial knowledge and they will usually be experienced investors, who have used a range of investment products in the past that have contained high levels of Equity.

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

Risk Profile 1
RISK AVERSE

Risk Averse investors prefer knowing that their capital is safe rather than seeking higher returns. They are not comfortable with the thought of investing in the stock market and want to keep their money in the bank or other cash-based deposits.

Risk Averse investors typically have very limited knowledge of financial matters. They are unlikely to have experience of investment.

Risk Averse investors can take a long time to make up their mind on financial matters and will usually su er from severe regret if their decisions turn out badly.

Risk Averse investors typically hold all of their money in cash deposits. Risk Averse investors need to be aware that their unwillingness to take any risk with their money may mean that the value of their savings does not keep pace with rises in the cost of living (inflation).

Risk Profile 3
BALANCED

In general, Balanced investors prefer not to take too much risk with their investments, but will do so to an extent. They tend to prefer lower risk assets, but realise riskier investments are likely to give better longer term returns. As a result, they realise that by taking a balanced level of risk the opportunity for increased returns is higher.

Balanced investors typically have moderate levels of knowledge about financial matters and they may have some experience of investment in riskier assets.

Balanced investors can take some time to make up their mind on financial matters and can su er from regret when decisions turn out badly.

Risk Profile 2
CONSERVATIVE

In general, Conservative investors prefer knowing that their capital is safe rather than seeking higher returns. They are not particularly comfortable with the thought of investing in the stockmarket and would rather keep most of their money in lower risk assets. However, Conservative investors do not believe that all of their money should be invested in lower risk assets such as Cash or Fixed Income.

Conservative investors typically have fairly limited knowledge of financial matters and they are unlikely to have much experience of investment.

Conservative investors can take a relatively long time to make up their mind on financial matters and will usually suffer from regret if their decisions turn out badly

Find out more about
Risk

Find out more about
Attitude to Risk

Find out more about
RISK PROFILES

Find out more about
Spreading Risk

DO YOU KNOW YOUR RISK PROFILE?

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Ablestoke Financial Planning LLP’s Registration Number is OC367708 and place of registration is England. The Company Registered Office is Admirals Offices, Main Gate Road, The Historic Dockyard, Chatham, Kent, ME4 4TZ. Ablestoke Financial Planning LLP is an appointed representative of Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited, which is authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA Register under reference 440703 and 440718. The term partner is used to refer to a member of Ablestoke Financial Planning LLP.

The value of investments and pensions and the income they produce can fall as well as rise. You may get back less than you invested.

Tax treatment varies according to individual circumstances and is subject to change.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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