Risk Questionnaire | Capital Wealth Partners

Attitude to risk assessment

Step 1 of 2

Attitude to risk assessment
To help us provide you with advice that suits your approach to risk, we will require you to complete our short risk assessment. The questions are all multiple choice and you will be provided with a score at the end of the assessment.
Client 1 - Name*
First Last
Date of Birth*
1. I have sound financial knowledge to help me make financial decisions.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
2. I feel comfortable about investing in the stock market.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
3. I'm more concerned with returns over the long term than I am with returns over individual one-year periods.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
4. I am prepared to take higher risks to make higher returns.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
5. I am used to taking financial risks.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
6. I am comfortable with the idea of my investments falling and rising rapidly.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
7. Usually it takes me a long time to make up my mind on financial matters.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
8. I am nervous about making investment decisions.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
9. I would describe my experince of investing as very limited.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
10. I prefer the safety of keeping my money in the bank.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
11. I generally look for the safest type of investment, even if that means lower returns.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
12. I am concerned about the uncertainty of stock market investments.*
- Strongly Agree
- Agree
- No strong opinion
- Disagree
- Strongly disagree
13. If an investment in your portfolio suddenly fell in value significantly, what would be your immediate reaction?*
- Really worried, and feel I should never have held such a risky investment
- Slightly nervous, but would only start to worry if the holding fell further
- Understanding, as holdings such as this are a normal part of a portfolio
- Comfortable and tempted to buy more if the investment case hasn't changed
- Relaxed, I would add to the position if the investment case hasn't changed
14. The graph to the right shows four hypothetical investment portfolios with an initial investment of £100,000. Which portfolio would you feel most comfortable with, remembering that you could have started investing at any time over the period and potentially have lost money.*
- Portfolio A
- Portfolio B
- Portfolio C
- Portfolio D
- Cash
Portfolio D has the highest end value but also has the biggest rises and falls during the period. Portfolio A on the other hand has much lower volatility but has a lower end value.
15. An investment is a trade off between long term return and risk. The graphs on the right illustrate the changes for five hypothetical portfolio values over the course of one year. Below are their annualised returns. Please select which portfolio you would be most comfortable with:*
- Portfolio A - 3% pa
- Portfolio B - 4.5% pa
- Portfolio C - 6.5% pa
- Portfolio D - 8% pa
- Portfolio E - 10% pa
The questionnaire you have completed will help both you and us to understand your approach to investment risk. We will use this information when advising you on the best way to achieve your financial goals. Based on this questionnaire your attitude to risk score is:
Risk assessment score:
This places your attitude to risk as:
RISK AVERSE - Not prepared to take any investment risk whatsoever (0-11)
In general, risk averse investors prefer knowing that their capital is safe and they are not comfortable investing in higher risk investments such as equities. They would rather keep their money in cash and unlikely to have much experience of investment beyond bank accounts. Risk averse investors need to understand that their caution can mean that their investments may not keep pace with inflation, or that they may fall short of their investment goal.
CAUTIOUS - Prepared to accept a limited amount of investment risk with minimal volatility. (12-23)
In general, cautious investors would prefer not to take risks with their investments, but they might be comfortable to do so to a limited extent. They would prefer to keep most of their money in the bank, but they realise that other higher risk investments might be better over the long term. Cautious investors may have some limited experience of investment products, but will be more familiar with bank accounts than other types of investment.
BALANCED - Prepared to accept exposure to investment risk and volatility as part of a diversified portfolio for the potential of higher returns. (24-35)
In general, balanced investors understand that they have to take investment risk to meet their long term goals. They are more willing to take risk with at least part of their available assets and will focus on ensuring that their portfolio is well diversified across the asset classes. Balanced investors may have some experience of investment, including investing in products containing equities.
PROGRESSIVE - Prepared to accept a higher level of risk and volatility for the potential of higher returns. (36-47)
In general, progressive investors are willing to take on investment risk and understand the nature of long term risk/return trade off. They are willing to take risk with more of their available assets. Progressive investors are typically experienced investors, who have used a range of investment products in the past. They accept that occasional poor outcomes are a necessary part of long-term investment and typically have portfolios with large holding in equities and other higher risk investments.
SPECULATIVE - Prepared to accept total exposure to investment risk and volatility for the potential of higher returns. (48-60)
In general, speculative investors want the highest possible return on their capital and are willing to take considerable amounts of risk to achieve this. They are usually willing to take risk with a substantial part of their available assets. Speculative investors typically have significant amounts of investment experience and will have typically been managing their own investments. Speculative investors have firm investment views and will make up their minds on financial matters quickly. Speculative investors have portfolios made up of primarily higher risk investments.
I agree with this assessment of my attitude to risk.
- I agree

Attitude to risk assessment

Step 1 of 2

Attitude to risk assessment

RISK AVERSE - Not prepared to take any investment risk whatsoever (0-11)

CAUTIOUS - Prepared to accept a limited amount of investment risk with minimal volatility. (12-23)

BALANCED - Prepared to accept exposure to investment risk and volatility as part of a diversified portfolio for the potential of higher returns. (24-35)

PROGRESSIVE - Prepared to accept a higher level of risk and volatility for the potential of higher returns. (36-47)

SPECULATIVE - Prepared to accept total exposure to investment risk and volatility for the potential of higher returns. (48-60)

10. Client Declaration