Client Services

Risk Analysis

SWA Online Risk Questionnaire

Understanding your attitude towards investment risk is very important and to assist with this we recommend you complete our risk questionnaire. The questionnaire will generate a total score which is used to help determine your risk profile.

This ranges from 1 – Very Cautious to 5 – Very Adventurous.

For couples, we suggest that each party completes a questionnaire.

Name *

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Date of Birth

Question 1: *None whatsoeverA small amountA medium amountA large amount of riskIn order to see potential gain, what amount of risk are you currently prepared to take with your financial investments?

Question 4: *Withdraw your money and put it in a savings account to prevent any further lossesTransfer your money to a more secure investment product to reduce the risk of further lossesMonitor the investment and wait to see if it improvesInvest more funds to take advantage of the lower price, expecting future growthImagine that six months after making an investment the financial markets start to perform badly. In line with this, your own investment goes down by 20%. What would your reaction be?

Question 5: *DaringSometimes daringA thoughtful risk takerCarefulVery cautious and risk averseHow would a close friend describe your attitude to taking financial risks?

Question 6: *Panicked and very uncomfortableQuite uneasyA little concernedAccepting of the possible highs and lowsExcited by the potential for gainIf you had picked an investment with potential for large gains but also the risk of large losses how would you feel?

Question 8: *4% return and minimal risk of loss9% return and possible 10% lossA mixture of the aboveImagine that you have some money to invest and a choice of two investment products, what annual average return and what annual risk of loss would you be prepared to accept?

Question 9: *All of itMore than halfHalfLess than halfNoneAn investment that has the potential to make a lot of money will usually also have a greater risk of losing money. How much of the money that you have to invest would you be willing to place in an investment with potential high returns but with an equal element of risk?

Calculations

Cautious

You are prepared to take only a small amount of investment risk and capital protection is important. This means that your portfolio will contain a small amount of riskier assets in order to increase the chance of obtaining better long term returns. A typical Cautious investor will be invested in fixed interest and cash and will also include an element of equities and property. The range of assets provides diversification benefits to reduce the overall risk.

Cautious to Moderate

You are prepared to take some investment risk in order to increase the chances of achieving a reasonable return but would still like to ensure that capital protection is still considered.
A typical Cautious to Moderate investor will be invested in a moderate amount of fixed interest, but with a greater proportion in equities and property. At the shorter terms there may also be some cash.

Moderate

You are prepared to take a reasonable amount of investment risk in order to increase the chance of achieving a better return. Capital protection is less important to you than the return on the investment. A typical Moderate investor will usually invest in a variety of assets to obtain diversification. There would be a higher proportion of equities compared to fixed interest and cash, and the range of assets provides diversification benefits.

Moderate to Adventurous

You are prepared to take some risk with your investment in return for the prospect of the improving longer term investment performance as short term capital protection is not important. A typical Moderate to Adventurous investor will be invested mainly in equities but with other assets included to provide some diversification. There may be a small amount of specialised equity within the portfolio.

Adventurous

You are prepared to take greater risks with your investment in return for the prospect of the highest longer term investment performance. You appreciate that over some periods of time there can be significant falls, as well as rises, in the value of your investment and you may get back less than you invest. This strategy holds significant risk in the shorter term. A typical Adventurous investor will be invested fully in equities, both in the UK and overseas. There may be a significant proportion of the investment in specialised equities.