Risk Profiler2

Please answer the following 10 questions. Each question has five possible answers (A to E). After completing the questions, click "See Results" to view your risk profile and example portfolios.

Note: This is an example. Everyone's perception of and approach to risk is different, and your unique financial situation or goals may require additional considerations. If you’d like to explore the topic further, check out this comprehensive post: How to Determine Your Risk Profile.

1. In the next 12 months, do you anticipate any large expenses or major financial goals (in USD)?

A. Yes — I have significant planned expenses (e.g., buying a home, covering large medical bills), and I would prefer to keep my funds very liquid. B. Possibly — I have a few moderate expenses (e.g., a big vacation, car purchase), so I want some liquidity and minimal fluctuation in my investments. C. Uncertain — I might have some mid-range expenses, but I’m okay with moderate fluctuations as long as I can meet these goals. D. Not really — I don’t foresee large expenses, and I’m comfortable with potential ups and downs if it means better long-term growth. E. No — I have no major expenses on the horizon and am fully prepared to park my money for higher returns, even with more volatility.

2. What percentage of your monthly income do you typically invest or set aside for savings?

A. Under 5% — I have limited capacity to save; most of my income goes to essential expenses. B. 5% - 10% — I save a small portion regularly, but I’m cautious about higher-risk investing. C. 10% - 20% — I’m comfortable saving a decent amount, and I’m open to moderate investment risks. D. 20% - 30% — I prioritize savings and can handle some market swings for potentially better returns. E. Above 30% — I save a significant chunk of my income and can absorb higher risk or longer-term investments confidently.

3. Suppose you invest $10,000 in a diversified portfolio. One week later, it drops to $8,500. How would you most likely respond?

A. Sell immediately — I don’t want to risk losing any more money. B. Sell a portion — I would reduce my exposure to limit potential further losses. C. Hold — I understand markets fluctuate, and I prefer to wait for a recovery. D. Stay invested, but watch closely — I might rebalance later, but I’m not panicking. E. Buy more — I view this as an opportunity to invest at a discount.

4. What is the primary focus when deciding on an investment?

A. Preservation of capital — I want to avoid any loss in principal. B. Maintaining stable returns — I’m okay with lower returns if volatility is minimal. C. Balancing growth and stability — I want moderate returns with moderate risk. D. Growth-driven — I’m seeking better returns, and I can tolerate fair market swings. E. Aggressive growth — I’m willing to take substantial risks for the possibility of high returns.

5. How prepared are you for an unexpected expense of about $5,000?

A. Unprepared — I would likely need to take on debt (credit card, personal loan) if it happens. B. Somewhat prepared — I have a small emergency fund but might still feel a pinch. C. Reasonably prepared — I have an emergency fund that could cover it, though it would reduce my savings noticeably. D. Well prepared — I have sufficient savings or insurance coverage to handle it with minimal worry. E. Very well prepared — $5,000 is not a concern; I maintain robust liquidity and/or insurance.

6. Which of the following investment opportunities would you choose?

A. A guaranteed 3% annual return — There is zero chance of losing money. B. A 25% chance of earning 6%, and a 75% chance of earning 2% — Some variability, but mostly stable. C. A 50% chance of earning 9%, and a 50% chance of earning 1% — Moderate volatility for moderate gains. D. A 75% chance of earning 12%, and a 25% chance of breaking even — Higher potential with higher risk. E. A 50% chance of earning 20%, and a 50% chance of losing 5% — I am comfortable with bigger swings for greater upside.

7. When do you realistically expect to need a substantial portion of your invested funds?

A. Within 1 year — I need high liquidity and minimal risk. B. Within 1-3 years — I’m somewhat flexible, but I still prefer lower volatility. C. Within 3-5 years — I can tolerate some fluctuations, but not huge ones. D. 5-10 years — I can handle market swings for a better overall return. E. 10 years or more — I’m investing for the long haul and can handle high volatility.

8. When widespread negative economic news hits the media, what do you typically do with your investments?

A. Sell everything and move into safe assets to avoid further losses. B. Sell some of my riskier holdings to reduce potential damage. C. Pause and monitor the market; I won’t sell unless the outlook becomes worse. D. Stay put — I recognize market cycles and prefer to maintain my positions. E. Buy more — I see a downturn as a buying opportunity for discounted assets.

9. A friend recommends a new, speculative technology asset that could potentially triple in value within a year, with no guaranteed fundamentals. What would you do?

A. Not invest at all — Speculative products are beyond my comfort zone. B. Research lightly but likely avoid it — I prefer proven, lower-risk assets. C. Research thoroughly and consider investing a small, affordable portion. D. Allocate a decent amount if I find the opportunity compelling after thorough research. E. Go all-in if I trust the potential, even if it’s high risk and unproven.

10. What is the maximum short-term decline you can tolerate in your total investment portfolio before feeling compelled to make changes?

A. 0% - 5% — I have a very low tolerance for losses. B. 5% - 10% — I can accept small dips before wanting to re-evaluate my strategy. C. 10% - 15% — I can handle moderate swings in value. D. 15% - 25% — I’m comfortable with sizable fluctuations for higher returns. E. 25% or more — Even large dips wouldn’t make me change course unless something fundamentally breaks.

Your Risk Profile

Example Portfolio Allocation

(These allocations are for demonstration purposes only.)

Asset Type	Allocation

Scoring Guide

10 – 18 points: Conservative
19 – 26 points: Moderately Conservative
27 – 34 points: Moderate
35 – 42 points: Moderately Aggressive
43 – 50 points: Aggressive