Profiles

It is important to be aware that your current risk aversion may not allow you to achieve the goals you have put in place for yourself.

So you will either need to change your goals or change your risk tolerance.

 

For the purpose of developing a suitable investment strategy and selecting appropriate investments for you, an initial assessment of your understanding of, and tolerance to risk and investment return volatility is necessary, therefore we have given you the investor profiles so that you can make the decision on the type of investor you are. Be aware however that you may need to change if your profile and your aims and objectives are not in unison.

Conservative

A conservative investor seeks maximum protection of capital and is prepared to sacrifice the prospects of a higher return for stability and preservation of capital. Minimal growth may be anticipated on the capital invested. Income is usually a greater priority than capital growth for this investor. Similarly, liquidity is often desirable, and conservative investors may accept lower return to ensure maximum liquidity.

Moderately conservative (cautious)

For the moderately conservative investors, stability of income is still a priority, with capital security important over the medium to long term. Modest growth is desirable over the medium to longer term to protect the real value of the investor’s capital or to ensure the income is increasing. A modest level of capital volatility can be expected from time to time.

Balanced (prudent)

Balanced investors seek moderate growth on capital to maintain its real and possibly increase its real value over the medium to longer term. A moderate demand is placed on income from the investment portfolio, while a moderate level of capital/income volatility may be tolerated, in anticipation of higher returns over the medium to longer term. A calculated risk is involved.

Moderately aggressive (assertive)

Moderately aggressive investors seek a higher level of growth on investment capital and a modest income stream. A higher level of volatility may be accepted in anticipation of higher returns (and greater opportunity to accumulate assets) over the medium to long term. Investors should have and investment time horizon of at least five years, as investment values and returns can fluctuate (volatility) over the shorter term.

Aggressive

Aggressive investors seek a higher level of growth on investor capital; income is an incidental benefit for this investor unless it is required for debt serving as part of a negative gearing strategy. A high level of volatility is acceptable as a trade-off against the potential of high to very high returns over the long term. Investors should have a time horizon of at least seven years, preferably longer. Borrowing for investment purposes may be an acceptable risk for this investor.