Home
Lodgement Confirmation
Agribusiness Investments
MIS Strategies
How To Invest
Your Risk Tolerance
Morningstar Research
Investment Education
Investment News
Useful Links
Financial Services Guide
About Us
Remember Us
Disclaimer
Privacy
 

YOUR INVESTOR PROFILE


Your Investor Profile

Your choice of fund will also be affected by your investor profile, which is a combination of factors - your investment experience, your attitude to volatility, and your investment time frame. Here are some examples.

Understanding Investor Risk Profiles
Cash

You are not prepared to risk any capital reduction on your investments and are prepared for the likely loss of buying power due to the erosive effects of inflation and taxation. This style of investor commonly has an investment time frame of less than 3 years.

Asset Allocation: 100% Cash
Cautious

You are prepared to accept very little variation of capital value when you invest. Your priority is to conserve capital and cannot afford to chance the investment value declining too much. You have a short term investment time frame of 3 years and are only prepared to hold a small proportion of growth assets. Your predominant requirement is for income returns and will therefore usually favour income bearing securities such as bank accounts, cash management trusts, mortgage funds, domestic bonds and international fixed interest with limited exposure to shares and property.

Asset Allocation Range: 70% Income / 30% Growth

Defensive

You are the type of investor who requires a solid income stream and place capital growth as a secondary priority. You know that you need some exposure to growth assets so that your capital is not entirely eroded by the effects of taxation and inflations, and would usually have an investment time frame of 3 to 5 years. The defensive investor portfolio is usually leans towards income bearing securities with no more than half the portfolio exposed to shares and property.

Asset Allocation Range: 50% Income / 50% Growth

Prudent

You find it acceptable to have variation to a large part of your capital value because you realise it is necessary to minimise the erosive effects of taxation and inflation. You remain cautious toward taking risk of capital loss and would usually have an investment time frame of 5 to 7 years. The Prudent investor would typically have emphasised holdings of shares and property with a smaller exposure to income bearing securities that will serve to smooth overall returns.

Asset Allocation Range: 30% Income / 70% Growth

Assertive

You are concerned by of taxation and inflation, and are most interested in maximising capital growth rather than income returns. You understand there may be some sacrifice to the short term value of capital in order to maximise returns in the longer term, and would usually have an investment time frame of at least 7 years. With an understanding of the movement of investment markets, the Assertive investor style would predominantly hold investments in Australian and international shares with some active management of property and fixed interest investments to balance the volatility effects.

Asset Allocation Range: 10% Income / 90% Growth

Aggressive

You are a high growth investor prepared to compromise your capital value in order to pursue potentially greater returns and usually have a long term of 10 years plus investment time frame. You are most interested in reducing your taxable income and have an understanding of the behaviour of investment markets. A high growth portfolio would typically comprise of diverse investment choices, however, there would be a predominance of actively managed Australian and overseas shares. Security of capital is secondary to the potential for wealth accumulation for this type of investor.

Asset Allocation Range: 100% Growth