Take Our Investments Questionnaire

When it comes to investing, it is important to make the right decisions and find the most suitable investment vehicles to meet your needs. Take our investments questionnaire and find out which type of investment suits you.

1. Do you feel comfortable about making decisions regarding your personal finances and investments?

a) Not particularly, I often find myself needing advice
b) Reasonably comfortable, I still need good financial advice from time to time?
c) Very comfortable, I do my own research and have a good understanding of financial products?

2. Do you currently own any investments?

a) No, but I am looking to start
b) I have a bit put away in a savings account or an ISA
c) I have a portfolio of investments that I review on a regular basis

3. The stock market can go down as well as up. How do you feel about the value of your investments changing?

a) I would be nervous about stockmarket volatility
b) It is not pleasant, but volatility happens from time to time
c) I don't mind as my investments are well-diversified

4. Last year the UK stockmarket fell by around 20%. How would you feel if your investment fell by roughly one-fifth of its value in a year?

a) I'd sell all my shares and close my investment before I lost everything
b) I'd be nervous and think about changing my investment
c) I am investing for the long-term, so I’m prepared to hold on when markets take a turn for the worse

5. Some investment funds are actively managed by a fund manager who aims to get higher returns than the market average. Other funds are ‘passively’ managed and aim to make the same return as an index. Which approach sounds most suitable?

a) I do not know
b) Passive funds are cheaper and carry less risk
c) I prefer to give my money to a manager who tries to do more with it, even if the costs are higher

6. Some investors prefer to keep their money in cash, but low interest rates and high inflation can damage the return available through cash accounts. How do you feel about your savings being eroded over time?

a) I prefer to keep my investments in cash so that I have additional security and can cash them in when I like
b) Inflation is a worry, but I like to keep some savings in cash, just in case I need them
c) I am looking for investments that will beat inflation over the long term, if cash cannot do this, I will invest elsewhere

7. When it comes to investing, how would you describe your attitude to risk?

a) I don’t do not want to invest in anything I do not understand, and I would prefer to keep my money in the UK if possible
b) I want a balanced portfolio, with some lower risk investments and higher risk investments
c) I am willing to invest in the areas of highest potential return, wherever they may be

If You Answered Mostly As

From your answers, you seem to have a fairly cautious approach to investing, and you might not have much experience of different types of investment. Even if you have a cautious nature you can still find suitable investments, and different asset classes (such as government bonds) with a relatively low risk profile. Bear in mind that any investment you make should be for the long term. So try to take short-term market volatility as a hiccup that will be forgotten over time.

If You Answered Mostly Bs

You have a fairly comfortable attitude towards saving investing and you have a reasonable understanding of how the stockmarket works, and the ups and downs that it suffers. You might find it useful to talk over your financial situation with an Independent Financial Adviser (IFA), who would be able to help you in taking the necessary steps to build a well-diversified portfolio that could help you retire more comfortably.

If You Answered Mostly Cs

You seem to be quite clued up on investing, and already have a portfolio of investments that you feel comfortable with. Be careful that you don’t take on too much risk in the hope of getting even greater returns. You should think about how the current market volatility has affected your portfolio, and make sure that your investment will still be on track to meet your overall objectives. As you get closer to your goal consider moving to more cautious funds to help preserve the savings you’ve already built up.