This information is provided for information only and must not be considered as investment advice. You should seek professional investment advice before making any investment decision.
An investor's financial affairs and objectives are likely to require human assessment which cannot be substituted with a system based approach. However, our risk profiler can help to assess the two elements of an investor's risk profile, the ability to take risk and the willingness to take risk. The profiler provides you with feedback, which can promote further discussion. Provided you are a registered adviser and have logged in, all reports that are generated will be available in the "Adviser Reports" section of this site.
If you are a registered adviser and have selected an investor account, then you will be able to make this visible to the investor and they will be able to retrieve the report when they login to their account.
Please note that reports will not be generated if you are not logged in.
Ability to take risk
An investor's capacity for loss is a factor of the following elements:-
Time Horizon – Long-term investments provide greater opportunity for losses to be recovered and grow, therefore more risk can be taken.
Liquidity – If income or withdrawals are required to be taken from the portfolio, especially in the short term, the level of risk that can be afforded will be reduced.
Wealth – Investors with a higher asset base relative to their future needs will have a higher ability to take risk. In addition, investors with a higher disposable income will be able to offset losses with higher savings and therefore have a higher ability to take risk.
Willingness to take risk
An investor's willingness to take risk is subjective. Just because an investor has a high ability to take risk does not mean that they need or want to take more risk.
An Adviser's relationship with an investor helps them to understand their risk aversion. In addition, hypothetical questions relating to losses, range and experience can help to build a picture of an investor’s willingness to take risk.
Please note the objective of this review is to help your financial adviser to assess your attitude and ability to take risk. This questionnaire does not constitute financial advice or endorse the advice you may receive from an adviser.
The questions are designed to allow your adviser to analyse your responses in the context of risk tolerances. The review is a guide only, therefore you should set out any specific objectives separately.
Your attitude to investment risk is central to selecting an investment portfolio, please consider each question carefully and provide the most appropriate answer. The answers you provide may be used by your adviser to recommend a suitable portfolio.
Investors and advisers should ensure that they are familiar with the Margetts risk scale, as this may differ to other providers.