Your approach to risk and return

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Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.

Risk Profiling Tool – Your Approach to Risk

The following questionnaire will help establish your appetite for Risk, which you may use to help guide investment decisions within your superannuation fund. The questionnaire has 10 questions. At the completion of the questionnaire we will send out via email a PDF document that you can use as a guide when selecting investments within your superannuation. The PDF will contain:

  1. The investment strategy most appropriate according to your degree of risk aversion (Growth, Balanced or Conservative) and the asset mix within each category;
  2. Some funds that meet your investment criteria along with their historical returns and costs.
Risk and Return Approach
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1. How confident are you with investment matters?
2. What level of risk are you prepared to apply to your investment?
3. What degree of investment risk have you taken in the past?
4. Investing in cash provides you with high security, however lacks in capital growth and will ultimately reduce your purchasing power. Considering this, is it more important:
5. If you had to choose between a secure job with a reasonable salary and a high paid job with less security, which would you pick?
6. To help us gauge your current risk levels, what return would you reasonably expect to achieve from your investment/s (based on current interest rates)?
7. You’ve noticed an investment you have made is performing poorly, however you don’t need any of the money you have invested for at least 10 years. Would you:
8. To achieve your future income goals, you are advised to take on a more aggressive investment strategy. Do you:
9. The greatest tax savings are generally obtained from more volatile investments. Which balance do you feel most comfortable with?
10. Six months after placing your investments you discover that the market has turned and your portfolio has decreased in value by 20%. Would you:
Your Approach: Conservative
Suits investors with a minimum two-year timeframe or those that seek a portfolio comprising mainly of interest bearing assets. This portfolio suits investors who give a high priority to the preservation of capital and are therefore willing to accept lower potential investment performance, hence the 85% exposure to income assets (cash/fixed interest).
Growth assets: 15% | Defensive assets: 85%
Suggested Time-frame: Minimum 2 years
Your Approach: Moderate
Suits investors with a minimum three-year timeframe or those who primarily seek income with some potential for capital growth. This portfolio also suits investors seeking a low level of investment value volatility, and therefore willing to accept lower potential investment performance, hence the 70% exposure to income assets (cash/fixed interest).
Growth assets: 30% | Defensive assets: 70%
Suggested Time-frame: Minimum 3 years
Your Approach: Balanced
Suits investors with a minimum five-year timeframe or those who seek both income and capital growth. This portfolio suits investors who desire a modest level of capital stability but are willing to accept moderate investment value volatility in return for commensurate potential investment performance, hence the 50% exposure to growth (shares and listed property) and 50% exposure to income (cash/fixed interest) assets.
Growth assets: 50% | Defensive assets: 50%
Suggested Time-frame: Minimum 5 years
Your Approach: Growth
Suits investors with a minimum seven-year timeframe or those who are willing to accept higher levels of investment value volatility in return for higher potential investment performance. Some capital stability is still desired, but the primary concern is a higher return, hence the 70% exposure to growth assets (shares/listed property).
Growth assets: 70% | Defensive assets: 30%
Suggested Time-frame: Minimum 7 years
Your Approach: Aggressive
Suits investors with a minimum nine-year timeframe or those who are willing to accept high levels of investment value volatility in return for high potential investment performance. The 85% exposure to growth assets (shares/listed property) means that capital stability is only a minor concern.
Growth assets: 85% | Defensive assets: 17%
Suggested Time-frame: Minimum 9 years
Your Approach: Very Aggressive
This suits investors with a minimum ten-year timeframe or those who are willing to accept very high levels of investment value volatility to maximise potential investment performance. The 100% exposure to growth assets (shares/listed property) means that capital stability is not a consideration.
Growth assets: 100% | Defensive assets: 0%
Suggested Time-frame: Minimum 10 years