Find out your risk profile in a couple of minutes
Not sure where to start with investing? You’re not alone. A good place to start is by answering a few simple questions about your goals, your timeframe, and how you feel about market ups and downs. From there, we'll suggest a risk profile based on your responses, so you can explore investment options that match your comfort level with risk.
What your risk profile tells you
Not sure how much investment risk is right for you? You're not alone. Your risk profile is a simple way to understand how comfortable you are with short-term market ups and downs in pursuit of higher long-term returns. It's one of the most important things to know before choosing an investment because it helps you find an option that matches your comfort with risk. There isn't one "best" investment, only what's right for you.
Once you know your risk profile, you can put it into action in two ways: choose an investment portfolio that suits your preferences and check whether your investment options (including superannuation) are aligned to the same level of risk.
Understanding risk profiles
Each risk profile invests in a different mix of growth assets, such as shares and property, and defensive assets, such as fixed interest and cash. Growth assets may offer higher long-term return potential but can experience more ups and downs, while defensive assets are generally more stable but provide lower long-term returns. Every investment involves risk, and the value of your investment can go up or down. Returns are not guaranteed.
When using our tool, each profile includes a suggested minimum investment timeframe, as well as expected returns, to help you choose an option that matches your goals and time horizon.
Defensive
A defensive investor seeks to minimise losses through defensive assets, such as cash and fixed interest, to provide protection from market volatility
Conservative
A conservative investor seeks to minimise losses through a larger allocation of defensive assets, such as cash and fixed interest, and a smaller allocation of growth assets, such as shares and property, to provide protection from market volatility.
Moderate
A moderate investor seeks moderate gains through a balance of growth assets, such as shares and property, and defensive assets, such as cash and fixed interest. This approach involves accepting some short-term volatility for potential long-term growth.
Growth
A growth investor seeks high gains through growth assets, such as shares and property, while maintaining some protection with defensive assets, such as cash and fixed interest. This approach involves accepting short-term volatility for potential long-term growth.
High Growth
A high growth investor seeks significant gains through growth assets, such as shares and property, while maintaining some protection with defensive assets, such as cash and fixed interest. This approach involves accepting higher short-term volatility for potential long-term growth.
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We offer a range of financial advice options to support you at every stage of life.
Can your risk profile change over time?
Yes. and that's completely normal. Your risk profile isn't set in stone. As your goals, timeframes and circumstances change, the amount of investment risk that's right for you can change too.
Major life events can change your financial priorities and how much investment risk you're comfortable taking. This could include approaching retirement, starting a family, buying a home, receiving an inheritance or experiencing a redundancy.
As a guide, it's worth reviewing your risk profile at least once a year, and whenever a major life event occurs. It only takes a few minutes and can help ensure your investments stay aligned with your goals.
Frequently asked questions
About two minutes. You'll answer a few simple questions about your goals, investment timeframe, how comfortable you are with market ups and downs, and your current situation.
No. The tool suggests a risk profile based on your answers, but it doesn't take your full personal circumstances into account. If you'd like personal advice, explore our other advice options.
Yes. Your risk profile reflects how you feel about risk and potential returns. That can help guide decisions about both your super and investments outside super. You can use your result as a starting point when reviewing your super option or choosing an investment portfolio.
Absolutely. It's a good idea to revisit your risk profile after a major life event or at least once a year. As your circumstances and goals change, your approach to investing may change too.
A risk profiler reflects how you feel about risk at the time you complete it. But your response to market movements can be different in real life, especially during periods of uncertainty. Think of your result as a helpful starting point rather than a definitive answer.
That's valuable insight. A result you weren't expecting may suggest your current investments don't fully align with your attitude to risk. It's a good opportunity to review your choices and consider whether financial advice could help.
Ready to find out your risk profile?
Take the quiz and find out your risk profile in just a couple of minutes.
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Disclaimer
Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and issuer of FirstChoice range of super and pension products. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the responsible entity and issuer of products made available under FirstChoice Investments and FirstChoice Wholesale Investments.
Information on this webpage is provided by AIL and CFSIL. It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the target market determinations (TMD) for our financial products at https://www.cfs.com.au/tmd which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.