Understanding your own risk appetite will help you choose what to invest in to get the best return without taking on more risk than you can handle.
Our Risk Profiler Tool can help you better understand your risk appetite and provide a rough guide on the types of assets and the investment horizon you’ll need to achieve your goals.
Alternatively, you’ll need to answer each of the following questions with ‘low’, ‘medium’ or ‘high’:
- What length of time will you be able to stay invested?
- How comfortable are you with a negative return?
- What level of investing experience do you have?
- What kind of returns would you like to receive?
If you answered mainly ‘low’, your risk appetite is likely also low. Similarly, mostly ‘medium’ suggests you probably only have a moderate risk appetite.
It gets a bit trickier if you answered mostly ‘high’. This could indicate you have a high-risk appetite, but if your answer to question one was ‘low’ or ‘medium’ your risk appetite is likely to be either ‘low’ or ‘medium’ – regardless of how you answered questions two to four.
Once you know your own risk appetite, you can choose investment options to match, including within your super, pension, and investments.
Our tools and calculators can also provide you with a deeper understanding of your financial situation so you can make more informed decisions about your financial future. And if you need additional support, a financial adviser can assess your risk appetite, select investments and create a plan that’s appropriate for your needs. If you don’t have an adviser, you can locate one near you using our find an adviser service.