Your Investment Risk Tolerance

CSS Investments respects and values the trust you put in us to advise you on your investment strategy. To do this effectively we need to understand the amount of risk you are prepared to take with the investments you have asked us to advise you on. When we talk about risk we are balancing the possible return you will receive from your investment compared with the possibility of losing some or all of your investment. Any investing involves a degree of risk and it is a fundamental part of investing. When we talk about risk we mean the risk that the investment strategy might not perform in the way you had hoped for. We appreciate that every client’s risk appetite is different and indeed it is a rather a subjective concept. However by gaining an understanding of your personal risk tolerance through talking with you, by reviewing with you the answers in this short questionnaire, and by obtaining information from you regarding your income, your investments, your liabilities, and your investment aspirations, we aim to assist you reach your financial goals. Naturally, there are no right or wrong answers in answering these questions. The questions are designed to stop and make you reflect on the amount of investment risk you are comfortable with at the current time.

Client Risk Profile

Risk Capacity & Time Scale

Risk Tolerance

Investment Experience

Note: this does not represent the exact allocation of your investments with CSS as this will be dependent on discussions with your broker and products that you wish to trade and those that are suitable.

  Lower Risk & Return Medium Risk & Return High Risk & Return
A. 100% 0% 0%
B. 70% 30% 0%
C. 0% 70% 30%
D. 0% 0% 100%

Your Risk Measure

Whilst this is a crude means of assessing investment risk, based on the information and answer you have given, it would suggest…

If you answered mostly “A’s” – it would indicate you are a Cautious Investor looking to preserve your money. If this is the case, you should reflect whether investing in the stock market is something you are comfortable with. If it is, we would look to invest in only blue-chip stocks, Bonds (if applicable) and investment trusts/ETFs that are suitable.

If you answered mostly “B’s” – it would indicate you are a Prudent Investor. This means you are looking to preserve some of your money whilst accepting some risk. This would mean we would look to invest in predominately blue-chip stocks, Investment Trusts, ETFs, Bonds (if applicable) with some exposure to mid-cap stocks.

If you answered mostly “C’s” – it would indicate you are an Adventurous Investor. You are happy with a degree of risk with your investing. We would look to invest you in a range of stocks from Blue Chips to Aim stocks, Investment Trusts, including Derivatives and lower grade Bond exposure if deemed suitable.

If you answered mostly “D’s” – it would indicate you are an Intrepid Investor. You are prepared to take on a higher level of risk and fluctuations in the value of your investments over a longer time frame. You may have no short-medium term requirements for your investments and should you lose the money invested this would not have a detriment impact on your lifestyle. This would tend towards a portfolio of smaller cap and mid cap stocks with some more cyclical blue-chip stocks and potentially higher risk Bonds, Investment Trusts, ETFs, as well as Derivatives (if suitable).

As an advised investor the ultimate decision on where to invest and in what securities will still be yours. This risk profile will act as tool to guide us in the types of companies you might be interested in hearing about and potentially investing in. At the end of the day we want you to be happy with the investment decisions we have advised you on – hopefully these will be successful for you – but when they are not your investment profile should indicate that you were happy taking that degree of risk and we will continue to look for further opportunities for you.

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