Risk profile

The bigger the gamble, the more you win... or lose.

It's the same with investing. A big risk can come with big rewards. But how much risk are you willing to take to get that reward? And, if you lose, do you have the time to make up for any losses?

Investing is all about getting the right balance for you. Use this quiz to find out how much risk you are prepared to take and how it might affect your investment choices.

When booking a weekend away do you...?

a) Book months in advance - you don't want the hotel to be fully booked

b) Leave it until a month before - you'll try to get a discount for a last minute deal

c) Turn up on the day and hope for a spare bed - how many people stay in hotels anyway?

When studying for exams do you...?

a) Cancel your plans and spend every spare minute of your time revising

b) Fit revision round your everyday activities

c) Decide that there are better things to do and fill your calendar with social events

When in the supermarket do you...?

a) Stock up on carrots and potatoes - you can't go wrong with the classics

b) Try the butternut squash - it's been recommended by a friend so it can't be that bad

c) Choose the exotic looking items - they will be a talking point at least

At a theme park would you...?

a) Ride the carousel - you make sure you stop before you begin to feel a little dizzy

b) Test out the log flume - you've remembered your rain mac so won't get soaked

c) Head straight for the biggest rollercoaster - you'll ride it with no hands all the way round

When you're faced with a major decision would you...?

a) Research your options before making a decision

b) Ask friends and family what they have done

c) Toss a coin

Mostly ‘a’s – safety first
You know what you like and will do all you can to ensure that everything runs smoothly. You would prefer not to take risks and might want to consider investing in lower-risk investments which also give smaller returns.

Mostly ‘b’s – everything in moderation
It’s all about balance with you. You don’t mind taking a bit of a risk, but would prefer it to have at least some chance of a reasonable return. When investing you might want to spread your pension savings over a range of areas so you get a bit of everything.

Mostly ‘c’s – give anything a go
You’re not afraid to try something new. You would prefer to take a risk in the hope to get a better return, even if it does mean suffering a loss in the meantime. Higher-risk investments can give great returns but also come with bigger risks.

SHPS | Defined Contribution

Risk profile