Evaluate your Investment Profile

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As an investor, acknowledge your investment profile and what kinds of products are available and suitable for you.

Firstly, by evaluating your investment profile, the outcome will provide you what kind of risk you are willing and can take when investing your savings. A Financial Advisor should conduct it when you start to invest and revise it periodically, but it is not complex do it by yourself and evaluate without the interference of commercial purposes that a financial advisor may have.

Find below some examples of questionnaires and a video to guide you in evaluating what is your investment profile:

Investment Profile

Additionally, getting information about the products more suitable for you, a Financial Advisor should help you, will further your opportunities to be more assertive while investing. Here are some of the product’s characteristics to be observed before investing: key product features, structured ongoing and back-end fees, restrictions taxes involved, returns and last but not least risk factors.

Finally, the role that the product can play in an investment portfolio can determine the success to achieve your goals or meet your financial commitments. The selection of the instrument(s) to invest must be defined after knowing your investment profile (which includes your goals) and understanding the products (risk and return) you are interested in.

Risk and Return graph for Investment ObjectivesInvestment Profile graph

Thus, you will start to be able to discuss consciously with your Financial Advisor and decide how, what, and when to invest.

If you have any comment, suggestion or opinion, let me know at “Leave a Reply” following this post.

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References:

Coursera. The key things you need to know to define your investment profile – UBS guest speaker. Retrieved from Coursera: https://pt.coursera.org/learn/meeting-investors-goals/lecture/0WeuL/the-key-things-you-need-to-know-to-define-your-investment-profile-ubs-guest

Franklin Templeton. Best Fit Questionnaire. Retrieved from Fiduciary Trust: http://www.fiduciarytrust.ca/content-us/images/thumbnails/en-us/en-ca-ftci/BestfitQ.pdf

Brady, M. (2014). MFDA Discussion Paper on the Use of Investor Questionnaires. Retrieved from Mutual Funds Dealers Association of Canada: http://mfda.ca/bulletin/Bulletin0611-C/

 

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