Risk Profile Questionnaire for Individuals

This form is to be used by your suitably qualified financial adviser to help assess your tolerance to investment risk.

Personal Details

Title:	Mr	Mrs	Miss	Other
Surname:
Full Forenames:
Date of birth:
Postcode:
email

Risk profile questionnaire

1. When do you need this money or how long do you want to hold on to this investment?

Enter number of years:

Enter number of years:

2. Do you have an emergency fund to provide for unexpected expenses, so as to avoid drawing on medium to long term savings to meet immediate needs? (This fund should be equal to at least three months after tax income.)

No:
Yes – but very small:
Less than 6 months’ salary:
Around one year’s salary:
More than two years salary:

3. What is your expectation of your future earnings over the next 5 years?

I expect my earnings to decrease:
I expect my earnings to keep pace with inflation:
I expect my earnings to increase somewhat ahead of inflation:
I expect my earnings to fluctuate:
I expect to retire shortly:

4. What percentage of your total assets, ( excluding your home) are you proposing to invest now?

Less than 25%
25% to less than 50%
50% to less than 75%
75% or more

5. Which statement most closely reflects your current financial situation?

I am completely debt free
I am mortgage free but have a few other obligations
I have a reasonable mortgage but no other debts
I have a mortgage and a few other obligations
I have a lot of obligations

6. Which statement best describes your objectives for this investment?

I am risk averse and not prepared to expose myself to high volatility to earn higher returns. Stable annual returns are desired
I want to achieve higher long term returns and am prepared to tolerate reasonable levels of volatility
I want to maximise my long term returns and spend little time worrying about short term market movements

7. At the beginning of the year you have £100,000 invested. The chart and options below shows the performance of 5 different hypothetical investments. Each bar gives a range of possible values at the end of the same year. Which investment are you most happy with?

This chart is for illustrative purposes only and does not reflect performance of a specific index or fund - click to enlarge

Portfolio A: £114,000 to £96,000
Portfolio B: £124,000 to £90,000
Portfolio C: £131,000 to 84,000
Portfolio D: £138,000 to £78,000
Portfolio E: £144,000 to £72,000

8. What level of fall in the value of this portfolio over a one-year period would concern you, bearing in mind that equity investment requires a long term view?

0% to just under 5%
5% to just under 10%
10% to just under 15%
15% to just under 20%
None of these concern me

9. Suppose 1 year ago you invested £100,000 in a portfolio. The market value has gone down during the period and your investment is worth £87,000. Would you:

Sell the portfolio and invest the proceeds in a less volatile investment?
Sell part of the portfolio and invest the proceeds in a less volatile investment?
Sit tight expecting the portfolio to recover?
Sell the portfolio and invest the proceeds in something riskier to try to recoup your losses?
Invest more money in the same portfolio?

10. You are more concerned that your portfolio grows faster than inflation than you are about returns over any one-year period.

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

11. If you could increase your chances of improving your returns by taking more risk, would you be:

Will to take a lot more risk with all of your money?
Willing to take a lot more risk with some of your money?
Willing to take a little more risk with all of your money?
Willing to take a little more risk with some of your money?
Unlikely to take much more risk?

Your investment objectives

How much do you wish to invest (£):

How much do you wish to invest (£):

1. If you are investing for growth is there a target amount you wish to achieve? If so what is it?

(£)

(£)

2. If you are investing for income what is your expected tax rate

Starting
Basic
Higher

3. What annual yield do you require (after allowing for the specified tax rate)?

(%)

(%)

Investors should assess the acceptable inflation and investment risk of not meeting a given target (after allowing for personal tax), particularly for periods under 10 years for volatile investments.

Your financial adviser will compute a suggested risk score and asset allocation. The risk score gives an indication of the level of risk you may be prepared to take with this investment on a range of 1(low risk) to 10 (high risk). The score is only a guide and you can decide, with the help of your financial adviser, to invest more cautiously or more aggressively.

Authorised and Regulated by the Financial Services Authority FSA No.402725
Registered Address: 3 Station Road Borough Green Sevenoaks Kent TN15 8ER.
Registered in England. Registration No.3694074

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