Risk Profiler

Answer below questionnaire to find out risk profile of yours:

1. Do you believe luck is important in making your investment decision?
a. Yes
b. Sometimes
c. No

2. When you hear unexpected adverse or bad financial news, you
a. Stay calm
b. Rarely overreact
c. Panic

3. Would you invest in a stock based on a friend’s tip?
a. Yes
b. Maybe
c. No

4. Between a new position offering greater job security with lesser pay and another with a higher pay but less job security, which would you select?
a. Higher pay
b. Not sure
c. Greater job security

5. Would you borrow money to make an investment that might double your money?
a. Yes
b. Maybe
c. No

6. If you have invested in a stock that rose 30% within 6 months after you bought it you would
a. Do nothing or buy more shares
b. Sell some shares
c. Sell all your shares

7. If you could increase your chances of improving your returns by taking more risk, you would
a. Take more risk with 20% of your money
b. Take some risk with 10% of your money
c. Unwilling to take much more risk

8. What percentage of your household income (after tax) is spent each month paying off credit card bills, car payments and either on rent or mortgage payments?
a. More than 50%
b. Between 25% and 50%
c. Less than 25%


9. Which one of the following statements best describes your feelings about investment risk?
a. I prefer to take higher risk for better returns
b. I prefer to select a balanced mix of investments to lower my risk
c. I prefer to stay conservative with low returns

10. Do you expect your future earning over the next five years to
a. Increase
b. Stay the same
c. Decrease

11. Would you invest in individual stocks or equity (stock-base) unit trusts?
a. Yes
b. Maybe
c. No

12. If you know investing EPF fund could potentially gives you higher return, would you invest?
a. Yes
b. Maybe
c. No


SCORING
For all questions,
a = 3 points
b = 2 points
c = 1 point


Total score             Investor Profile
12-18 points               Conservative
19-29 points               Moderate
30-36 points               Aggressive

Note: By knowing your Risk Profile and Risk Capacity, you can decide your Strategy of Investment.
We will discuss about the risk capacity in next topic.