|Determining your risk profile
Your risk profile reflects how you feel about taking risks when investing. The risk profiling tool helps you determine your risk profile and choose which of the available investment options best matches your profile.
What does your risk profile mean?
By answering these simple questions, you can determine your risk profile and the type of investor you are, based on your personal preferences and how close to retirement you are. The questions define your attitude to security and the level of risk you are prepared to accept for your investments.
In general terms those people that are prepared to take greater risks with their investments, do so on the basis that they will receive greater returns, and invest in growth investments. Those people that need greater security tend to take less risk and invest mostly in defensive investments, which give a greater security against losses but produce lower returns.
However, this tool does not take into account your individual circumstances, investment objectives, existing financial situation or particular superannuation needs, all of which should be considered before making a decision, to invest. In making your decision you need to feel comfortable that the selected strategy is appropriate for you. You should consider whether you should seek personal financial advice before making your final decision.
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Always seek financial advice if you are unsure of which investment strategy is for you.