Risk Tolerance Questionnaire

Please complete all sections to ensure that the RAM Report calculation will be as accurate as possible.

This questionnaire is an important part of our process for helping you understand the inherent risks of investing, how we can manage them and to agree on how we move forward with helping you invest to reach your goals.

Your responses to this questionnaire will help us to understand your attitude towards risk and return and will always remain private and confidential.

Assessing your attitude to risk

The following questions are designed to assess tolerance to investment risk. This is an important step in identifying an appropriate investment strategy to help you meet your objectives.

Please answer each question by selecting the most correct answer.

1. I usually get what I want in life.
2. If I do not succeed on a task, I tend to give up.
3. I never try anything that I am not sure of.
4. When considering taking financial risks, how do you view yourself?
5. Which of the following statements best describes your investment knowledge and understanding when considering investment?
6. I am more comfortable putting my money in a bank account than in the share market.
7. Many types of investments can fluctuate up and down in value. Financial services professionals state that you should be able to endure downturns in the value of your investments over short-term periods. Based on the answers below, by how much could your investment fall in value over a short-term period before you feel uncomfortable?
8. If you were confronted with a significant financial decision in relation to an investment, would you be more concerned about the potential losses or the potential gains?
9. Have you ever invested a significant amount of money into an investment that fluctuates up and down in value, how did it make you feel when the investment fell in value?
10. Suppose you unexpectedly inherited a large sum of money, you are debt free and wanted to invest the money for your future. Which of the following investments would you consider most appropriate?
11. Suppose that two years ago you purchased shares in a company that was recommended to you by experts due to the future business prospects of that company. After a two year period of the share market in a downward trend (a bear market) the shares of the company were trading at a lower price than what you paid for them.

You subsequently receive expert advice that confirms that even though the share price is lower due to the share market conditions over the last two years, the future prospects of the company are even stronger than previously advised. Given that your shares in this company are already trading at a loss, would you buy more shares in this company based on the latest expert advice?

12. Investment gearing is the process of borrowing money to invest, although gearing can increase the potential return significantly and often provide taxation benefits; it also significantly increases the level of risk. Suppose a financial planner recommended that you borrow money to invest in a portfolio of managed funds and shares, which of the following would best describe your reaction?

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