Second, our advisers will ask you to fill out an Attitude to Investment Risk Questionnaire.
Attitude to Investment Risk – To assist us with the delivery of our Investment Services we use a system called Dynamic Planner provided by Distribution Technology. Distribution Technology is the UK’s leading provider of financial planning and sales technology and has an excellent reputation for market-leading advice technology.
Their tool allows us to analyses our clients’ attitude to investment risk using a range of psychometric questions, this will help us determine where you sit on our risk scale and providing clients with a view of the consequences of their decision through the production of expected gains and losses based upon clients’ risk choices.
We assess your attitude to investment risk in 4 stages, which are outlined below,
Following our discussion around the risk you wish to take, we will agree a risk profile, this risk profile will outline the amount of your investment will be allocated to an asset class. The lower the risk profile number the lower the potential risk to your capital, but also the lower the potential return.
This means our advisers can pick the right areas for you to invest in and help you work out a time scale it may take for you to be able to achieve your goal.
Capacity for Loss – As previously stated, investments can go down as well as up, it is important for us to know how much loss of your capital you can tolerate before you feel you need to do something.
Your Tax Position – Will determine the type of investments we recommend as different investments will provide better tax efficient growth and income opportunities.