Annuity

There is a well-established principle regarding financial investments that an investment with a below average risk of capital and / or income loss is expected to return ( on average, over longer terms) less than investments with higher risk levels. Investments with potential for higher returns are normally exposed to a higher degree of risk in terms of income and/or capital losses. The objective of this questionnaire is to ascertain what your inherent (natural) tolerance for risk is with this investment, considering the returns that you would ideally expect. The determination of your risk profile will guide you to choose the most appropriate investment option for your personal profile in pursuit of your investment goal. Please note that the selected risk profile may eventually determine the balance between volatility/(in) stability (the continual change between gains and losses of your investment) on the one hand and the return on your investment on the other.

Answer the questions to calculate your risk profile

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Annuities

risk profile calculator

Annuity Risk Profile calculator Annuity Risk Profile calculator Annuity Risk Profile calculator
1
Choose the option that closes resembles your intended investment:
   
A Lump sum investment of R 10 000 or a recurring investment of R 100 pm.
B Lump sum investment of R 100 000 or a recurring investment of R 1 000 pm.
C Lump sum investment of R 1 000 000 or a recurring investment of R 10 000 pm.
   
   
2
What investment term is required for this particular investment?
   
A Shorter than 3 years
B Between 3 and 5 years
C For 5 years and longer
   
   
3 Look at the graphs of this questionnaire that display hypothetically the best and worst performances of four typical investments (each having a different investment risk) over a 5-year period. Consider the instability of the investment values and the possible losses and/or gains that may occur during the investment term. Select the one that you are willing to accept with the most comfort, given your investment goal.
 
 
   
 
   
4 Suppose you made a one-off payment a few years ago or have been investing on a recurring payment basis
 
for a few
 
From the options given below, indicate the worst future performance of the investment that you possibly can tolerate.
   
A
B
C
D
E
   
   
5 Select the investment return that most closely resembles your expectation for the investment you are
 
considering now.
   
A Returns in excess of inflation (plus 2% to 4%), but with possibility of capital losses.
B Maximise returns, even though returns might be unstable and significant capital losses may occur from year to year.
C Returns at least equal to inflation (with a small possibility of occasional capital loss).
   
   
6 Suppose you made a one-off payment a few years ago or have been investing on a recurring payment
 
basis for a few
 
 
A
B
C
D
E
   
   
7 The chart of this questionnaire shows hypothetically the changing values of a typical one-off payment of
 
 
Select the portfolio that best fits your expectation of the balance between return and stability in investment value.
 
 
   
   
8
What is your immediate income requirement from the investment that you are actually considering?
 
A No immediate income required
B Moderate income requirement (between 5% & 8% of capital per year)
C High income requirement (more than 8% of capital per year)
   
   
9
Select the statement that best describes the overall goal of the investment you are considering now.
 
A Capital preservation very important; can accept only small risk of capital loss over any 1 year period; maximizing capital stability.
B Provision of income; can accept only limited risk of capital loss over any 1 year; stable income.
C Need the potential for future capital and income growth; can accept some risk of capital loss over any 1 year.
D Provision of long-term capital growth, with no current need for income, at the risk of potentially extremely unstable returns from year to year.
   
   
 
   
   
  Calculated risk profile:
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