Risk profile

Your risk profile reflects the type of investor you are

Risk profile

Your risk profile reflects the type of investor you are

Making investments is about making choices. Your risk profile reflects the type of investor you are and your attitude to the return of your investments and the risk they entail. A higher return is therefore associated with a higher risk.

When drawing up your risk profile, we take account of:

  • your financial situation;
  • your knowledge of and experience with investments;
  • your investment objectives;
  • your attitude to risk.

We have defined four distinct risk profiles.

Highly defensive risk profile

If you have a highly defensive risk profile, you invest primarily in products that can be quickly redeemed. That keeps the risk down. You therefore have a short investment horizon. You can generate additional return by investing in interest-bearing products. Only investments offering capital protection should be included in the equities component. The emphasis therefore remains on playing it safe.

Defensive risk profile

If you’re a defensive investor, you put the emphasis on security. You’re prepared to accept a little more risk than a highly defensive investor and you can also afford to do without your money for a somewhat longer period of time (three to five years). You have a bias for interest-bearing investments. The weighting of your equity investments will be on the modest side. They should preferably be made up of capital-protected instruments. Effective diversification remains important.

Dynamic risk profile

As a dynamic investor, you target a potentially higher return by allocating your investments near enough evenly between shares and interest-bearing products. Under normal market conditions, this allocation represents for you a good balance between risk and return. However, you are also aware that prices can fall. Therefore, trying to achieve a higher return entails taking on additional risk. Dynamic investors can do without some of their assets for a longer period (5 to 7 years).

Highly dynamic risk profile

As a highly dynamic investor, the focus of your investments is on shares. Your primary objective is a high return. You’re not put off by substantial fluctuations in the value of your investments. With this profile, you only opt for a small proportion of investment products offering capital protection or for interest-bearing investments. Therefore, having a large percentage of shares gives you the chance of achieving a higher return, but also exposes you to greater risk. Effective diversification is important at all times.