1. Investment horizon
How long is your investment horizon?

1 - 2 Years
3 - 5 Years
6 - 10 Years
More than 10 Years

2. Years to retirement
How long do you intend to work before reaching retirement age? The longer the period, the higher the risk you can take.

Already Retired
1 - 5 Years
6 - 9 Years
10 - 15 Years
More than 15 Years

3. Cash reserve
How much cash reserve, not counting your investment portfolio, do you have for emergency purposes? The higher the reserve, the higher the investment risk you are likely to withstand.

Not a lot. Therefore, principal protection is more important to you.
Have some but not a lot. Can accept medium risk/return trade-off.
Have substantial cash reserve without any debt. In a position to take on higher investment risk in return for higher expected return.

4. Cash flow
How is your cash flow in the next 3-5 years? Do you anticipate to take out any cash from your investment portfolio in the foreseeable future? If this is the case, you may face a negative cash flow, which means that you are unlikely to withstand too much investment risk compared to people with positive cash flow.

Need to withdraw funds from the investment portfolio on a continuous basis.
Stable cash flow.
Positive cash inflow into the investment portfolio.

5. Anticipated cash draw down
Although, this is quite hard to forecast, but in the next 3-5 years, do you anticipate to withdraw a substantial sum from your investment portfolio for such purposes as school fees, mortgage, medical expenses?

May need to withdraw the whole amount from the investment portfolio.
May withdraw more than half of the amount in the portfolio.
May withdraw only a small amount from the portfolio.
No withdrawal at all.

6. Need for current income
Do you need to rely on income or dividend generated from the investment portfolio for day-to-day living expenses?

Highly dependent on the income generated
Yes to a large degree.
A little.
Not at all.

7. Investment philosophy
What is your investment philosophy in the next 10 years? For each of us, this can often indicate the amount of risk/return trade-off we can withstand.

Cannot afford to loose any principal even though the return may be low.
If I can get a reasonable return from investing in government bonds, I would avoid the stock market.
I believe in the concept of compound interest together with capital gains from equity investments.
I am a risk taker. I want maximum return without any concerns about the associated risks.

8. Investment philosophy about long term investment
Do you believe in investing for the long-term and can you accept short-term volatility?

No, I do not.
I can accept a little bit of risk but do not want to loose my principal.
I can accept medium term risk in exchange for higher long-term return.
I can afford to loose money in certain years in exchange for higher long-term return.
I fully believe in the above investment philosophy.

9. Investment objectives
What are your main investment objectives?

Principal protection but can accept low return.
Heavy emphasis on current income with some capital gains.
Balance between current income and prospects of capital appreciation.
Long-term capital appreciation with no need for current income.

10. Investment risk philosophy
What are your thoughts on investment risks?

Can accept very little investment risks.
Can accept some investment risks.
Can accept medium level investment risk.
Can accept quite high investment risk.
Can accept very high investment risk.

 7 - 15 Points
Low Risk Tolerance
 16 - 30 Points
Medium Risk Tolerance
 31 - 38 Points
High Risk Tolerance


Tips on Tactical Asset Allocation Strategies

Important notes

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