Risk Tolerance Assessment Tool Risk Tolerance Assessment 1. Investment Time Horizon: How long do you plan to keep this portion of your money invested? Less than 2 years 2 to 5 years 6 to 10 years More than 10 years 2. Reaction to Market Volatility: If your investments lost 15% of their value in a short period (e.g., 3 months), how would you most likely react? Very concerned, I would likely sell to prevent further losses. Concerned, I might sell some or stop investing more. I would be uneasy but would likely hold my investments. I would see it as a potential opportunity to invest more. 3. Investment Knowledge: How would you rate your understanding of investments and financial markets? Limited / Beginner (I prefer simpler, well-explained options). Fair / Intermediate (I understand basic concepts like stocks, bonds, mutual funds). Good / Advanced (I am comfortable with more complex investments and strategies). 4. Preference for Growth vs. Safety: Which statement best describes your investment preference? Prioritize safety of principal, even if it means lower returns. Seek a balance between safety and moderate growth. Aim for significant growth, willing to accept moderate fluctuations. Aim for aggressive growth, comfortable with high volatility for potentially higher returns. 5. Importance of this Investment: How critical is the capital you are investing with this risk profile to your overall financial well-being? Very critical, I cannot afford to lose any of this capital. Important, but I have other savings/income sources. Not immediately critical, this is for long-term goals and I can tolerate some risk. Calculate My Risk Profile Download Assessment Your Estimated Risk Tolerance Profile
