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Portfolio Questionnaire

Complete the 8 questions below to give your most suited Portfolio type:

1. This first question looks at your capacity for loss. Over the next 2 years, what would your reaction be to loss on this investment and how would it impact your overall financial situation?


2. When do you expect to start withdrawing money from your investment?




3. Once you begin withdrawing money from your investment, how long do you expect to continue withdrawing funds?




4. The following graph shows the results of five example portfolios over a one-year period. The best potential gains and worst potential losses are displayed.

Note: the portfolio with the best potential gain also has the largest potential loss.

Which of these portfolios would you prefer to hold?






5. The table below displays the worst case losses, expected gains, and best case gains of an investment of £10,000 in five sample portfolios over a one-year period.

Which portfolio would you prefer to hold?






6. You have made an investment of £10,000 and its value falls by 20% to £8,000.

Assuming you still have 10 years until you begin withdrawals, how would you react?





7. For many investors, the possibility of losing money is a main concern.

How do you feel about investment losses?





8. Choose the answer that best describes your response to the following statement:

I am comfortable with investments that may frequently experience large losses in value if there is a potential for higher returns.

Does this describe you?






9. Most investments fluctuate year-to-year.

Suppose you invested £10,000 in a portfolio with the intention of holding it for ten years.

If this investment lost value during the first year, at what value of your initial £10,000 investment would you sell and move to a more stable investment?






10. Investing involves a trade-off between risk and returns.

Historically, investments with higher returns have been associated with greater risk and chance for loss. Alternatively, cautious investments that have had a lower chance for loss, also have yielded lower returns.

Based on this description of investments characteristics, which of the following statements best describes your attitude to risk?






11. Over a long period, risky investments usually generate greater wealth than less risky investments do. The table below lists the possible values at the end of a 20-year investment of £10,000 in 6 different portfolios. Note that in any given year, risky investments might experience a decline in value that significantly surpasses a decline in the value of less risky portfolios. The table below also displays the potential number of years, in which the investment realises negative returns.

Which of these portfolios do you prefer?






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  • is not warranted to be accurate, complete or timely.

This Morningstar-sourced information is provided to you by Compass Wealth Management Consultants Ltd and is at your own risk. You agree that Morningstar is not responsible for any damages or losses arising from any use of this information and that the information must not be relied upon by you the user without appropriate verification. Compass Wealth Management Consultants Ltd informs you as follows: (i) no investment decision should be made in relation to any of the information provided other than on the advice of a professional financial advisor; (ii) past performance is no guarantee of future results; and (iii) the value and income derived from investments can go down as well as up.

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Which Portfolio type are you?
Your responses indicate that you have a very low tolerance to risk, possibly due to your investment time horizon. Please talk to us about a solution involving an investment strategy with zero capital risk. Cautious Income
Balanced Income
Growth
Your responses indicate that you are willing to take a high level of risk to seek potentially higher returns. Please talk to us about a bespoke investment solution to suit your individual needs.