Asset Managers
Private Wealth Management
CLIENT RISK PROFILE QUESTIONNAIRE
Financial Advisor: Asset Managers
Client’s Name : _________________
A. Personal Particulars
1. Where can we reach you? (You prefer mail being sent to: Office Home )
At office: ________________________________________________________________
By phone/s: _____________________________________ by fax: _________________
By e‐mail: _________________________________________________________________
At home: __________________________________________________________________
__________________________________________________________________________
By phone/s: _____________________________________ by fax: __________________
2. If married, may we include your spouse in your life cycle plan (recommended)? Y/N/NA
If Yes, please give us his/her contact details: Name: __________________________
At office: __________________________________________________________________
__________________________________________________________________________
By phone/s: ______________________________________ by fax: _________________
By e‐mail: __________________________________________________________________
3. Your date of birth is: ____________________ and your spouse’s: ______________
Your Children’s name & date of Birth (wherever applicable):
a). __________________
b). _________________
1
RISK PROFILING
Important Notice to Clients
In order for us to provide financial planning advice to you, we need to have a reasonable basis for that advice. The
information requested in this Client Risk Profile Questionnaire is one of the tools we use to establish a basis for
the advice we will provide. It is therefore important for you to complete this document as accurately and fully as
possible. Failure to do so could result in advice being provided that is not appropriate to your individual needs,
circumstances and objectives.
NOTE TO CLIENT/S
This section of the Fact Find should be completed with the assistance of your Relationship Manager to ensure you
fully understand the outcome from this section. Your Relationship Manager will educate you on the investment risk
and return functions and their relationship with each other; the various asset classes and their potential risks and
features.
THE INVESTMENT RISK AND INVESTMENT RETURN RELATIONSHIP
THE RISK‐RETURN CHART
The relationship between long term risk (volatility) and return in different asset classes is illustrated
below.
International
Equity
Equity
Gold
Fixed
Interest
Cash
RETURN
Low Moderate High
VOLATILITY
Please complete the below questionnaire in full.
It is important that you answer each question accurately and honestly, otherwise it may result in an
investment risk profile that is not suitable for your investment portfolio or that does not adequately reflect
your current attitude towards investing.
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YOUR Investment Risk Profile Levels
Investment risk refers to the level of volatility or fluctuation that a person is prepared to accept in investment returns
– including the potential risk of loss of some capital in the short‐term, and the potential risk that retirement goals may
not be met in the longer term. Volatility refers to the unpredictable upward and downward movements in investment
values over a period of time.
Please answer all the questions below by ticking (9) only ONE of the options for each question. Choose the option
that BEST indicates how you feel about each question.
1. What is your Investment horizon? How long can you keep your money invested in the market before
needing access to it?
a) Up to two years
b) Two and three years
c) Three and five years
d) Five years and Ten years
e) Ten years and more
2. The age group you belong to:
a) 51 years & above
b) 36‐50 years
c) 25‐35 years
d) Less than 25 years
3. How well do you understand investing in the markets?
a) I am a novice. I don’t understand the markets at all.
b) I have basic understanding of investing. I understand the risks and basic investment concepts like
diversification.
c) I have an amateur interest in investing. I have invested earlier on my own. I understand how markets
fluctuate and the pros and cons of different investment classes.
d) I am an experienced investor. I have invested in different markets and understand different
investment strategies. I have my own investment philosophy.
4. My current and future income sources (example: salary, business income, investment income etc) are:
a) Very unstable
b) Unstable
c) Somewhat stable
d) Stable
e) Very Stable
5. From the following 5 possible investment scenario, please select the option which defines your
investment objective?
a) I cannot consider any Loss
b) I can consider Loss of 4% if the possible Gains are of 10%
c) I can consider Loss of 8% if the possible Gains are of 22%
d) I can consider Loss of 14% if the possible Gains are of 30%
e) I can consider Loss of 25% if the possible Gains are of 50%
6. If your investment outlook is long‐term (more than five years), how long will you hold on to a poorly
performing portfolio before cashing in?
3
a) Not hold & cash in immediately if there is an erosion of my capital
b) I’d hold for 3 months
c) I’d hold for 6 months
d) I’d hold for one year
e) I’d hold for up to two years
f) I’d hold for more than two years.
7. Volatile investments usually provide higher returns and tax efficiency. What is your desired balance?
a) Preferably guaranteed returns, before tax efficiency
b) Stable, reliable returns, minimal tax efficiency
c) Some variability in returns, some tax efficiency
d) Moderate variability in returns, reasonable tax efficiency.
e) Unstable, but potentially higher returns, maximising tax efficiency.
8. If a few months after investing, the value of your investments declines by 20%, what would you do?
a) Cut losses immediately and liquidate all investments. Capital preservation is paramount.
b) Cut your losses and transfer investments to safer asset classes.
c) You would be worried, but would give your investments a little more time.
d) You are ok with volatility and accept decline in portfolio value as a part of investing. You would keep
your investments as they are.
e) You would add to your investments to bring the average buying price lower. You are confident about
your investments and are not perturbed by notional losses.
9. Which of these scenarios best describes your “Risk Range”? What level of losses and profits would be
comfortable with?
Worst
Select Choice Year Best Year
a) Investment A 1% 15%
b) Investment B ‐5% 20%
c) Investment C ‐10% 25%
d) Investment D ‐14% 30%
e) Investment E ‐18% 35%
f) Investment F ‐21% 40%
Below is the score‐card that we will use to determine your risk profile, which in turn shall determine your asset
allocation mix.
Question no: A B C D E F Score
1 1 2 3 4 5 ‐
2 1 2 3 4 ‐ ‐
3 1 2 3 4 ‐ ‐
4 1 2 3 4 5 ‐
5 1 2 3 4 5 ‐
6 1 2 3 4 5 6
7 1 2 3 4 5 ‐
8 1 2 3 4 5 ‐
9 1 2 3 4 5 6
Total
4
Conservative Score grid 08‐19
You are an investor who is prepared to accept lower returns with lower levels of risk in order to preserve your
capital. The negative effects of taxation and inflation will not be concern to you, provided your initial investment
is protected. As a conservative investor, you might expect your portfolio to be allocated up to 15% in growth
assets, with the remainder in defensive assets.
Moderate Score grid 20‐29
You are an investor who would like to invest in both income and growth assets. You will be comfortable with
calculated risks to achieve good returns; however, you require an investment strategy that adequately deals with
the effects of inflation and tax. As a moderate investor, you might expect your portfolio to be allocated up to 35%
in growth assets, with the remainder in defensive assets.
Balanced Score grid 30‐39
You are an investor who is comfortable with a high volatility and high level of risk in order to achieve higher
returns over long term. Your objective is to accumulate assets over long term by primarily investing in growth
assets. As an aggressive investor you might expect your portfolio to be allocated up to 65% in growth assets.
Aggressive Score grid > 40
You are an investor who is comfortable with a higher level of risk in order to achieve potentially higher returns.
Capital security is secondary to potential wealth accumulation. As a high growth investor, you might expect your
portfolio to be allocated < 65% in growth assets over long term.
CONFIRMATION OF RISK PROFILE
After having arrived at the ratings under “Investment Risk Profile Types” and in consideration of your
investment objectives – Which profile you prefer the most and if you want to share any inputs on the same do
enter in the Remarks column.
Preferred Risk Profile Remarks
INVESTMENT RISK PROFILE ACCEPTANCE DECLARATION
I/We confirm that the details recorded in the “Risk Profile Determination Questionnaire” are correct and reflect
my/our true financial position and understanding and investment risk profile.
I/We confirm that I/we have read and understood our agreed Risk Profile selection and would like this profile
applied to my/our funds available for investment.
Date
Client signature / /