What is your Risk Profile?

Answer each of the following 12 questions. Take as long as you like, there is no time limit. For the multiple choice questions, try and choose the answer that is closest to your circumstances.

1. When you hear unexpected adverse or bad financial news, you
A. never overreact
B. rarely overreact
C. always overreact


2. Between a new position offering greater job security with small pay rise, and another, with a high pay rise but less job security, which would you select?
A. Probably higher pay rise
B. Not sure
C. Probably greater job security


3. Would you borrow money or go on margin trading to make an investment that might double your money
A. Yes
B. Maybe
C. No


4. If you have invested in a stock that rose 30% within 6 months after you bought it, you would
A. do nothing or buy more shares
B. sell some shares
C. sell all your shares

5. Do you believe luck is important in making your investment decisions?
A. Yes
B. Sometimes
C. No

6. If you could increase your chances of improving your returns by taking more risk, you would be
A. willing to take a lot more risk with all your money
B. willing to take some risk with some of you money
C. unwilling to take much more risk

7. What percentage of your household income (after tax) is spent each month paying off credit card bills, car payments and either on rent or mortgage payments?
A. More than 50%
B. Between 25% and 50%
C. Less than 25%

8. In case of an emergency, you would have available savings to pay for
A. less than 3 months' living expenses
B. 3-12 months' living expenses
C. more than 12 months' living expenses

9. Would you invest in a stock based on a friend's tip?
A. Yes
B. Maybe
C. No

10. Which of the following statement best describes your feelings about investment risk?
A. I prefer to select an aggressive mix of investment - some that have a low degree of risk, but with emphasis on others that have a higher degree of risk that may yield greater returns
B. I prefer to select a balanced mix - some that have a low degree of risk, others that have a higher degree of risk that may yield greater returns
C. I prefer to select a mix of investment with emphasis on those with a low degree of risk and a small portion in others that have a higher degree of risk that may yield greater returns

11. Do you expect your future earnings over the next five years to:
A. increase
B. stay the same
C. decrease

12. Would you invest in individual stocks or equity (stock-based) unit trust?
A. Yes
B. Maybe
C. No


You are a Moderate Investor (20-30)

As a Moderate Investor, you are most comfortable with a combination of low and high-risk investments in your portfolio. Bear in mind that you will need to take some degree of risk to receive greater reward. You will require an investment strategy that will cope with the effects of inflation. Most of all, you will not worry excessively about your investments when the market drops because you know that the potential for long-term capital growth means riding out the dips. Your allocation of your assets should be equally distributed among equity, balanced, and bond funds.


You are an Aggressive Investor (31-36)

As an Aggressive Investor, you are very comfortable with high-risk investments in your portfolio. You have no qualms about taking risk and in fact, you seek the greatest reward for every ringgit invested. You know that there will be potential for gains but also know that there will be potential for loss as well. You will have no problems with investing a major portion of your assets in equity funds, and a minor portion of your assets in balanced and bond funds

You are a Conservative Investor (12-20)

As a Conservative Investor, you are most comfortable with low-risk investments in your portfolio. You will only take the risk if your principal amount of investment is protected and incur interest from there. But bear in mind that your investments may not outpace inflation as the returns are considerably lower. Your best bet would be investing a majority of your assets in bond funds, and consider allocating a small percentage to both balanced and equity funds.

For calculation,

3 points for every question that you answered A.

2 points for every question that you answered B.

1 point for every question that you answered C.

Credit Card: A necessity in today's world

In today's world of globalization and internet business, credit card has become a necessity to most people, for credit card bring about convenience to all of us! With only one card in hand, our purchasing need can be fulfilled all around the world!

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