Investing is about taking account of the risks. Because a higher return is associated with greater risk. Your risk profile not only reflects what type of investor you are, you also need it before you can trade in savings and investment products. So we can always provide you with appropriate advice.
There are four risk profiles:
Highly defensive risk profile
The focus of this profile is on safety. You invest primarily in products that allow you to access your invested capital again within three years. This generally means that you have a short investment horizon. You achieve an additional return through interest-bearing products. Do you want to invest in shares? Then you ought to choose investments offering capital protection.
Defensive risk profile
The emphasis here too is on safety, but you are prepared to accept a little more risk. You can also afford to do without your money for a little longer – three to five years. You opt mainly for interest-bearing investments. The weighting of your share portfolio will be on the modest side, and, like the highly defensive investor, you will want to opt for capital protection.
Dynamic risk profile
You pursue a potentially higher return, but you understand that asset prices can also fall. Because a higher return means taking on additional risk. As a dynamic investor, you can do without your assets for five to seven years. Your investment portfolio is evenly allocated between shares and interest-bearing investments. Under normal market conditions, this entails an effective balance between risk and return.
Highly dynamic risk profile
The highest possible return is what you’re after and you’re more than happy to accept the extra risks that come with it. You’re not afraid of sharp fluctuations in price and you can do without part of your assets for more than seven years.
Your focus is primarily on shares. You opt for only a small proportion of interest-bearing investment types and shares with capital protection. The heavy weighting of equities offers you the chance of higher returns, but also brings greater risks. Effective diversification is very important.
Like to calculate your risk profile? We’ll be happy to help you.