Risk Tolerance Questionnaire

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Many people are uncertain about the level of market volatility they can or should tolerate in their investments. The information gathered here will help you and your advisor determine your tolerance or capacity for volatility.

Your advisor can then decide if there's a conflict between the asset allocation you need and the asset allocation you can comfortably accept, given your ability to tolerate investment volatility.

When answering the following questions you should have your specific investment objective in mind, as this will impact things such as your time horizon and the types of securities that are appropriate for this investment.

1. Do you need all of your invested money back in the next year or two?

Yes

2. When you consider this investment, what purpose do you have in mind?

Non-registered savings plan (non-RSP) or registered education savings plan (RESP)

Registered savings plan (RSP)

3. For how many years do you expect to maintain at least your current income level?

5 years or less

5 to 10 years

10 years or more

4. Your financial stability is important when determining how much risk you can tolerate in your investments. Do you feel that your current financial situation is

6. When investing, you may choose investments that provide a regular stream of income and/or investments that offer the potential for growth. Currently you need this investment to

Not decrease from your initial investment

Provide a stream of income

Provide a mix of income and growth

Grow, since income is not important to you at this time

Grow as much as possible

7. How many years will you keep this investment before you need to make withdrawals from the original amount?

3 years or less

3 to 8 years

8 to 12 years

12 years or more

8. When evaluating the performance of your investments you review your holdings

Frequently (at least quarterly) and sell investments that performed poorly since your last review

Annually and sell investments that performed poorly since your last review

At least annually to assess performance and change your portfolio only if investments have performed poorly for a long time and you do not expect them to increase

Infrequently or never

9. Which normal investment return best represents what you are prepared to accept over a one-year time frame given the potential loss that you may experience once in every 20 years? Choices = Normal return over one year (Loss once in 20 years)

10. Last year, you purchased units in a mutual fund. Since then, it has lost 15% of its value, which is consistent with the performance of similar funds. What is your reaction?

I would sell my units

I would keep my units

I would buy more units

11. With an original investment of $50,000, which hypothetical return history best represents the ideal performance for your portfolio over a ten-year period? (Chart is on the right-hand side of the page.)

Investment A

Investment B

Investment C

Investment D

12. Which statement best applies to you?

I must achieve my financial goal by my target date

I would like to come close to achieving my financial goal by my target date

I have the flexibility to move the target date further into the future if my investment value is below my goal

I re-evaluate my financial goal and my target date regularly and have the flexibility to adjust either to align with the performance of my investments

13. Which statement best describes your preferred approach to investing?

I would rather accept a lower rate of return to avoid fluctuations in the value of my account

I am willing to accept day-to-day fluctuations associated with an investment in the stock market for the potential to earn a higher return

I would like to achieve above-average returns on my investment and I am willing to accept some fluctuations in the value of my investment

I don't have a preferred approach

Questionnaire courtesy of AIM Trimark Investments.

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