Investor Risk Profiler
Understanding your psychological relationship with market volatility is the foundation of any successful investment strategy. The Risk Profiler helps you discover where you sit on the spectrum from Conservative to Very Aggressive.
Tolerance vs. Capacity
The profiler evaluates two critical components of risk:
Risk Tolerance
How you *feel* when markets drop 20%. This is your emotional ability to stay the course without panic selling.
Risk Capacity
What you can *afford* based on your time horizon and capital. A 25-year-old has higher capacity than a 65-year-old, regardless of tolerance.
The Assessment Process
1. Time Horizon
The total length of time you expect to hold your investments before withdrawal.
2. Emotional Reaction
Gauging your likely behavior during a 20% monthly market drop.
3. Primary Objective
Are you focused on capital preservation, steady income, or maximum growth?
4. Market Knowledge
Your experience level helps dictate the complexity of your ideal strategy.
Asset Allocation Mapping
Based on your profile, the tool suggests a deterministic asset allocation. For example, a **Moderate** profile typically suggests:
- Stocks / Equities50%
- Bonds / Fixed Income40%
- Cash / Alternatives10%
Stick to the Framework
Most investors feel "Aggressive" in a bull market and "Conservative" in a bear market. The goal of this tool is to help you find your **neutral baseline** and stick to it, regardless of short-term market noise.