Risk Assessment Quiz
Discover your investment risk tolerance and find the optimal asset allocation for your portfolio
Interactive Risk Assessment Quiz
1. What is your age range?
2. When do you plan to use this money?
3. If your portfolio lost 20% in a month, what would you do?
4. How would you describe your investment experience?
5. What's your primary investment goal?
6. How important is it to beat inflation?
Your Risk Profile: Moderate
Moderate Risk Tolerance
You're comfortable with some volatility in exchange for potentially higher returns than conservative investments. You understand that markets fluctuate but are willing to stay the course for long-term growth.
Characteristics:
- Balanced approach to risk and return
- Medium to long-term investment horizon
- Can tolerate moderate portfolio swings
- Seeks growth while managing downside risk
Recommended Asset Allocation
Expected Performance
Understanding Risk Tolerance
Risk tolerance is your ability and willingness to handle fluctuations in your investment values. It's influenced by factors like your age, financial goals, investment timeline, and emotional comfort with uncertainty. Understanding your risk tolerance is crucial for building a portfolio you can stick with long-term.
Risk vs. Return
Higher potential returns generally come with higher risk. The key is finding the right balance for your situation and comfort level.
Risk Profile Types
Conservative
Priority on capital preservation with minimal volatility.
Moderate
Balanced approach seeking growth with controlled risk.
Aggressive
Growth-focused with high risk tolerance for volatility.
Very Aggressive
Maximum growth potential with highest volatility.
Factors Affecting Risk Tolerance
Personal Factors
Age & Time Horizon
Younger investors can typically take more risk
Financial Situation
Stable income allows for higher risk tolerance
Investment Goals
Growth goals may require accepting more risk
Emergency Fund
Good safety net enables higher risk investments
Emotional Factors
Loss Sensitivity
How you react to seeing portfolio losses
Investment Experience
Experience with market cycles builds tolerance
Stress Tolerance
Ability to handle uncertainty and volatility
Sleep Test
Can you sleep well despite portfolio swings?
Using Your Risk Assessment
Choose Your Asset Allocation
Use your risk profile to determine the right mix of stocks, bonds, and other assets. This becomes your target allocation for building your portfolio.
Select Appropriate Investments
Choose index funds, ETFs, or target-date funds that match your risk tolerance. Avoid investments that are too conservative or aggressive for your profile.
Stick to Your Plan
During market volatility, remember your risk assessment. If you're staying within your comfort zone, avoid making emotional decisions based on short-term movements.
Reassess Periodically
Your risk tolerance may change over time due to age, financial situation, or experience. Reassess annually or after major life changes.
Risk Assessment Tips
- • Be honest about your emotional reactions
- • Consider your worst-case scenario tolerance
- • Factor in all sources of income and savings
- • Think about your long-term goals
- • Start conservative if you're unsure
- • You can adjust as you gain experience
- • Don't let fear prevent you from investing
- • Seek professional advice for complex situations