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Investment Risk Assessment

Understanding your investment risk tolerance is a critical step in making informed decisions about your financial future. This assessment helps you identify your comfort level with different investment strategies and market fluctuations. By answering a few key questions, you can determine whether you’re more suited for conservative, moderate, or high-risk investments.

Investment Risk Assessment

Answer the following questions to determine your true investment risk tolerance.

1. How do you react when the stock market drops by 10%?

Sell everything immediately
Wait and observe the market
Buy more while prices are low

2. What is your investment time horizon?

Less than 1 year
1-5 years
More than 5 years

3. How would you feel if you lost 20% of your investment in a year?

Panic and sell
Be concerned but hold on
See it as an opportunity to buy more

4. What percentage of your total savings are you willing to invest?

Less than 10%
10-50%
More than 50%

5. How often do you review your investment portfolio?

Rarely, I set and forget
Occasionally, when I hear news
Regularly, I actively monitor it

6. How much experience do you have with investing?

None, I’m a beginner
Some experience, I’ve invested before
Extensive experience, I actively trade/invest

7. How would you describe your current financial stability?

Unstable, I live paycheck to paycheck
Moderately stable, I have some savings
Very stable, I have strong financial security

8. How much debt do you currently have?

A lot, I struggle with repayments
Some, but manageable
None, I’m financially stable

9. How often do you make impulsive financial decisions?

Frequently, I buy on emotion
Occasionally, but I try to be rational
Rarely, I always analyze decisions

10. What is your primary financial goal?

Stability and security
Moderate growth over time
Maximum returns, even with risks

11. Have you invested in real estate before?

No, I have never invested
Yes, but only a small investment
Yes, I actively invest in real estate

12. How do you feel about using leverage (loans) to invest?

I would never take on debt for investing
I might, but only cautiously
I actively use leverage for high returns

13. How diversified is your current investment portfolio?

Not diversified, all in one asset
Somewhat diversified
Very diversified across multiple assets

14. How comfortable are you with international investments?

Not comfortable, I prefer local markets
Somewhat open to international investments
Very comfortable, I seek global opportunities

15. How important is liquidity (easy access to cash) in your investments?

Very important, I need access to cash
Somewhat important, but I can wait
Not important, I prioritize long-term growth

Your Risk Score: / 75

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