Heritage offer two forms of risk questionnaire. Below is a quantative risk profiler which, once completed, can be used to calculate your risk profile for a particular investment. It involves approximately 15 questions and should take no more than ten minutes to complete. If you are already pretty sure what your risk profile is for the investment in question you can use our 'quick risk profiler' capital growth investors or for income seeking investors which will take less than two minutes to send to us. If you would prefer to complete a paper copy and send the risk profile to us in the post click here.

The risk profiler below will enable us to accurately determine the level of risk you can tolerate in your invest or pension portfolio. Please answer all the questions. If no option is exactly right for you, please select the one that is closest.

Details

 

 

Question 1 - How would you rate the degree of risk that you are willing to take in your financial affairs?

 

Low risk

 

Question 2 - To what extent do you agree with the following statement? "I am prepared to forego potentially large gains if it means that the value of my investment is secure"

 

I agree

 

Question 3 - To what extent do you agree with the following statement? "In comparison with other people, I am more willing to make high risk investments"

 

I agree

 

Question 4 - What is more important for you in the context of your investments: the risk or the potential gain?

 

I usually focus on the risk rather than the potential gains

 

Question 5 - What degree of risk would you say you have taken in your PAST financial decisions?

 

Small
Large

 

Question 6 - What degree of risk do you wish to take in your FUTURE financial decisions?

 

Question 7 - Have you ever borrowed money for the purpose of making an investment (other than a mortgage)

 

Yes

 

Question 8 - Would you ever borrowed money for the purpose of making an investment (other than a mortgage) in the FUTURE?

 

Yes

 

Question 9 - Experts tell us that, as the value of investments can go up and down, we need to be prepared to weather the occasional dowturn. How upset would you be if your investments dropped by the following amounts in one year?

 

Investment Drop
Level of concern about the drop in value (1 = not all upset, 5 = devastated)
5%
10%
20%
30%
40%
50% or more

 

Question 10 - Financial Advisers usually invest money (in a 'portfolio') across a spread of investments. What sort of spread of investments would you find most appealing, for example, Portfolio 1 with 100% in low risk/return, or Portfolio 5 with 100% in high risk/return investments?

 

High Risk / Return
Medium Risk / Return
Low Risk / Return
1
0%
0%
100%
10%
20%
70%
20%
60%
20%
70%
20%
10%
100%
0%
0%

 

Question 11 - If you didn't require acces to your invested capital for at least six years in the future, for how long would you be prepared to see your invested capital go down in value before you decided to take it out of the markets and cash it in?

 

Question 12 - To what extent do you agree with the following statement? "I can tolerate the risk of large losses in my investments in order to increase the likelihood of achieving high returns "

I agree

 

Question 13 - If my stocks and shares dropped in value by 20%, I would take that as a good time to:

 

Question 14 - Suppose you are considering investing £20,000. You are selecting from a range of Portfolios A - F. There is a 50/50 chance that the investment will either increase or decrease in value. The portfolio performances are detailed in the graph below. Please indicate which investment you would prefer.

Portfolio Graph

 

Question 15 - The graphs below show the performance of four portfolios for the last ten years. Portfolio A doubled its value over the period, but it gains insome years, and suffered big losses in other years. Portfolio D grew by by a much smaller amount, but was steady from year to year.

 

Past performance is not necessarily a guide to future performance. However, considering your personal circumstances and reasons for investing (pension, income, growth etc.), which portfolio would you choose FOR THE FUTURE?

Portfolio Graphs

Thank you for completing the Heritage Risk and Reward Questionnaire. Please tick the box below to confirm you have read and understood our Terms and Conditions. We will use the information you have given us to recommend a suitable portfolio of investments for you.

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Answer the quesions the best you can. if you are unsure on any, then please contact us so we can talk you through it. For more details about Risk Profile and why we need to measure risk tolerance click here.

If you do not want to use the questions to help in assigning the right portfolio, you can opt to skip this process and select your chosen risk tolerance from our quick risk profilers for capital growth and income seeking investors.

An explanation of volatility

The relative rate at which the price of a security (your investment) moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock (your investment) moves up and down rapidly over short time periods, it has high volatility. If the price (fund value) almost never changes, it has low volatility.

When considering volatility, which historically tells us the more risk you take, potentially the greater the reward; the period of investment is critical. There is little point of investing in a high risk fund for less that 10 years because the fund value will fluctuate more shaprly and more often than lower risk funds. The fund must be given time to recover, which can take several months or several years.


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