Posts Tagged ‘questionnaires’
Investment Suitablity Questions
Investment Suitability Questions (courtesy of ING Private Bank)
1. When it comes to investing, you would describe yourself as:
a. Inexperienced
b. Have little experience
c. Have some experience
d. Very experienced
2. What types of investment are you familiar with due to actual investment experience or similar investment circumstances? (Encircle all applicable).
a. Bank deposits (SA/C/TD), Treasury Bills/Bonds
b. Fixed Income Instruments (ex. Commercial papers, corporate bonds)
c. Stocks
d. Structured products/derivatives
e. Funds (Unit Investment Trust Funds/Mutual Funds)
f. Others
3. What is your primary investment objective?
a. I want to preserve my capital
b. My investments must generate a steady income stream.
c. I want investments that have a potential for capital gain with some interesting earning characteristics.
d. Long-term capital gain. I am willing to forego current income for potentially high capital gain.
4. What is the maximum loss you are willing to accept on the portfolio?
a. None
b. 1 – 7 %
c. 8 – 15%
d. Above 15%
5. In normal market conditions, what net return do you expect form your investments?
a. 0 – 4%
b. 5 – 9%
c. 10 – 15%
d. Over 15% per annum
6. If your investment achieves spectacular return, what will you do?
a. Sell it completely to secure the gain
b. Begin to sell part of it
c. Hold for a while to see if the gain will continue
d. Add more in that investment
7. If you have excess money to invest, you will:
a. Deposit it in the bank
b. Have a few ideas on investing but require guidance
c. Feel confident about your investment choice, but may require occasional guidance
d. Feel totally confident to make your investment choice
8. What would be the most risky investment you would make?
a. Buy speculative stocks/financial derivatives
b. Invest in blue chip stocks
c. Invest in low risk bonds
d. Place money in time deposit with a bank
9. How often do you feel the urge to invest in highly speculative stocks?
a. Never
b. Rarely
c. Sometimes
d. Quite frequently
10. When do you plan to use/withdraw your investments?
a. Within 1 year
b. In 2 -3 years
c. In 4-5 years
d. In more than 5 years
11. When will you retire?
a. Already retired or within 5 years
b. In 6-9 years
c. In 10-15years
d. In more than 15 years
Response A B C D E
Q1 1 2 3 4
Q2 1 1 3 4 2
Q3 1 2 3 4
Q4 1 2 3 4
Q5 1 2 3 4
Q6 1 2 3 4
Q7 1 2 3 4
Q8 4 3 2 1
Q9 1 2 3 4
Q10 1 2 3 4
Q11 1 2 3 4
If Q2 if “others” is answered, the following scoring should apply based on the specified answer:
- Deposit products/Fixed Income – 1
- Equity – 3
- Structured Products/Derivatives – 4
- UITFs/Mutual Funds – 2
- Foreign Exchange – 3
- Hedge Funds – 4
- Real Estate – 4
- Commodities – 4
- Art – 4
Score
11 – 25 (Conservative)
Primary Goal is capital preservation -keeping risks to a minimum is more important than higher returns.
Suitable Products: Time Deposit, SDA, Government Securities, US Treasuries, ROP bonds, Corporate bonds, structured notes rated investment grade or principal protected, money market funds
26 – 40 (Moderate)
More experienced investor with greater focus on growth than income, wiling to accept higher risks for potentially higher returns, aware of the market volatility. Portion of portfolio is invested in growth assets.
Suitable products: Government securities, ROP bonds, Corporate bonds, Banks’ Tier 2 issues, structured notes which are principal protected (tenor <=3 years), bond funds, balanced funds, equity funds, stock (provided investments in equities not more than 50% of client’s total investible funds)
41-51 (Aggressive)
Mainly interested in capital growth with little regard for volatility, willing to accept significant risk, even possible loss of principal for potential to maximize returns over a time frame of 5+ years.
Government securities, ROP bonds, Corporate bonds/notes, Banks’ Tier 2 issues, structured notes, bond funds, balanced funds, equity funds, stocks, FX options, derivatives, swaps
Tags: questionnaires
