Investor Risk Profile Test

This risk profile test consists of 12 questions. Choose the answer that is closest to your circumstances.

1. How would you react when you hear unexpected adverse or bad financial news?
a. never overreact
b. rarely overreact
c. always overreact

2. Which job would you select - a new position offering greater job security with small pay rise or a high pay rise but less job security?
a. Probably higher pay rise
b. Not sure
c. Probably greater job security

3. Would you borrow money or go on margin trading to make an investment that might double your money?
a. Yes
b. Maybe
c. No

4. If a stock that you've invested has risen 30 % within 6 months after you bought it, would you:
a. do nothing or buy more shares
b. sell some shares
c. sell all your shares

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

6. If you could increase your chances of improving your returns by taking more risk, you would be
a. willing to take a lot more risk with all your money
b. willing to take some risk with some of you money
c. unwilling to take much more risk

7. What percentage of your net household income 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% -- 50%
c. Less than 25%

8. In case of an emergency, you would have available savings to pay for
a. less than 3 months' living expenses
b. 3-12 months' living expenses
c. more than 12 months' living expenses

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

10. Which of the following statement best describes your feelings about investment risk ?
a. I prefer to select an aggressive mix of investment - some that have a low degree of risk, but with emphasis on others that have a higher degree of risk that may yield greater returns
b. I prefer to select a balanced mix - some that have a low degree of risk, others that have a higher degree of risk that may yield greater returns
c. I prefer to select a mix of investment with emphasis on those with a low degree of risk and a small portion in others that have a higher degree of risk that may yield greater returns

11. Do you expect your future earnings over the next five years to :
a. increase
b. stay the same
c. decrease

12. Would you invest in individual stocks, unit trust or investment-linked fund?
a. Yes
b. Maybe
c. No

Disclaimer and conditions: There is no guarantee that the answers given by the Investment Risk Profile Test are either complete or correct. It is not the author's responsibility if the user has incurred any monetary or non-monetary loss as a result of using the calculator. Use this test only for rough guide.

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