When investing it is important that you consider the level of risk as well as the return on an investment in view of your circumstances and investment goals. Risk means different things to different investors. For some, investment risk means the likelihood of a loss of capital, while for others it is the level of volatility of an investment, or the risk of an asset not producing enough income to live on.

This Investment Risk Profile Calculator has been designed to assist you make your investment decisions. It asks some questions regarding your goals, time frames and comfort with investments to provide a guide to your investor risk profile.

Once your investment risk profile has been calculated, you can view the asset allocation relating that risk profile (eg, shares, managed funds, property, fixed interest and cash).

I have read and understood the important information relating to using this Risk Profile Calculator.

Question 1 of 7

Less than 12 months
Between 1 and 3 years
Between 3 and 5 years
Between 5 and 7 years
Longer than 7 years

Question 2 of 7

A reasonable return without losing any capital
1-3%
4-6%
7-9%
Over 9%

Question 3 of 7

You would cash it in if there was any loss in value
Less than 1 year
Up to 3 years
Up to 5 years
Up to 7 years
Up to 10 years

Question 4 of 7

Very little understanding or interest
Not very familiar
Have had enough experience to understand the importance of diversification
I understand that markets may fluctuate and that different market sectors offer different income,
growth and taxation characteristics
I am experienced with all investment classes and understand the various factors that may
influence performance.

Question 5 of 7

Preferably guaranteed returns, ahead of tax-savings
Stable, reliable returns with minimal tax savings
Some variability in returns, some tax savings
Moderate variability in returns, reasonable tax savings
Higher variability but potentially higher returns, maximising tax savings

Question 6 of 7

Horror – Security of your capital is critical and you do not intend to take risks.*
You would cut your losses and transfer your funds to more secure investment sectors.
You would be concerned, but would wait to see if the investments improve.
This was a risk you understood – you would leave your investments in place expecting performance to improve.
You would invest more funds to take advantage of the lower unit/share prices expecting future growth.

Question 7 of 7

You have an investment time frame of over 5 years. You understand investment markets and are
mainly investing for growth to accumulate long-term wealth, or are prepared to use aggressive
investments to provide income.
You are not nearing retirement, have surplus funds to invest and are aiming to accumulate long term wealth
from a balanced portfolio.
You have a lump sum (eg inheritance or a superannuation rollover payment from your employer) and you
are uncertain about what sort of investment alternatives are available.
You are nearing retirement and you are investing to ensure you have sufficient funds available to enjoy your retirement.
You have some specific objectives within the next 5 years for which you want to accumulate sufficient funds.
You want to provide a regular income and/or totally protect the value of your investment capital.

This score indicates a Very Conservative "Cash" risk profile.

Investors fitting this profile may have a short-term investment horizon or a very low tolerance for risk. They may seek a return similar to cash rates.

Potential Asset Mix

Very Conservative investors may consider placing 100% of their investable funds into cash assets like term deposits and cash management trusts.

This score indicates a Conservative "Fixed Interest" risk profile.

Investors fitting this profile may have an investment horizon of at least 3 years and a low risk tolerance. They may seek higher than cash returns over the investment timeframe.

Potential Asset Mix

Conservative investors may consider placing 100% of their investable funds into defensive assets, such as cash and fixed interest. These include term deposits, cash management trusts and fixed interest government and bank backed securities.

Defensive assets are expected to grow at a slower rate over the longer term but are expected to experience less volatility.

This score indicates a Moderately Conservative "Capital Stable" risk profile.

Investors fitting this profile may have an investment horizon of at least 3 years and a low to moderate risk tolerance. They may seek regular income and the opportunity for some growth over the investment timeframe.

Potential Asset Mix

Moderately Conservative investors may consider placing 70% of their investable funds into defensive assets such as cash and fixed interest. These include term deposits, cash management trusts and fixed interest government and bank backed securities.

Defensive assets are expected to grow at a slower rate over the longer term but are expected to experience less volatility.

The remaining 30% may be invested in growth assets, such as shares, managed funds and property.

These assets have historically grown at a rate greater than inflation over time and usually produce higher returns than defensive assets but can also demonstrate greater volatility in the short term.

This score indicates a Moderate "Conservative Growth" risk profile.

Investors fitting this profile may have an investment horizon of at least 3-5 years and a moderate risk tolerance, seeking a mix of income and growth over the investment timeframe from a well-diversified portfolio.

This strategy suits investors aiming for a return higher than what is likely from a portfolio dominated by defensive assets but who want lower volatility than what a share fund would likely generate.

Potential Asset Mix

Conservative Growth investors may consider placing 50% of their investable funds into defensive assets such as cash and fixed interest. These are expected to grow at a slower rate over the longer term but are expected to experience less volatility.

The other 50% may be invested in growth assets, such as property and shares. These assets have historically grown at a rate greater than inflation over time and usually produce higher returns than defensive assets but can also demonstrate greater volatility in the short term.

This score indicates an Assertive "Balanced" risk profile.

Investors fitting this profile may have an investment horizon of at least 5 years and a moderate risk tolerance. They may seek more growth than income over the investment timeframe.

This profile fits investors aiming for a return higher than what is likely from a more defensive portfolio but who want lower volatility than what a share fund would likely generate.

Potential Asset Mix

Assertive Balanced investors may consider placing 70% of their investable funds into growth assets, such as property and shares.

These assets have historically grown at a rate greater than inflation over time and usually produce higher returns than defensive assets but can also demonstrate greater volatility in the short term.

The remaining 30% of investable funds may be invested in defensive assets such as cash and fixed interest. These are expected to grow at a slower rate over the longer term but are expected to experience less volatility.

This score indicates a Moderately Aggressive "Growth" risk profile.

Investors fitting this profile may have an investment horizon of at least 5-7 years and a moderate to high risk tolerance. They may seek a high exposure to growth assets.

Potential Asset Mix

Moderately Aggressive Growth investors may consider placing 85% into growth assets, such as property and shares. These assets have historically grown at a rate greater than inflation over time and usually produce higher returns than defensive assets but can also demonstrate greater volatility in the short term.

The remaining 15% of investable funds may be invested in defensive assets such as cash and fixed interest. These are expected to grow at a slower rate over the longer term but are expected to experience less volatility.

This score indicates an Aggressive "Share" risk profile.

Investors fitting this profile may have an investment horizon of at least 7 years and high risk tolerance. They may be comfortable with a share portfolio dominated by Australian and international shares.

Potential Asset Mix

Aggressive Share investors may consider placing 100% of their investable funds into growth assets, such as property and shares. These assets have historically grown at a rate greater than inflation over time and usually produce higher returns than defensive assets but can also demonstrate greater volatility in the short term.