Your investment style tells us about your attitude to investment risk, investing knowledge and experience, and financial circumstances. This includes how comfortable you are with investment losses and your ability to afford them.
It helps us understand you as an investor and assess whether our Managed service is suitable for you.
What are the five investment styles?
Your investment style is based on your answers about how comfortable you are with risk and how losses could affect your finances. From higher to lower risk, the five styles are:
Pioneer
Your answers suggest you’re comfortable taking a higher degree of risk and can afford the potential losses. You accept the possibility of bigger falls in your investment’s value for the chance of higher returns. This is our highest-risk investment style.
Ambitious Investor
Your answers suggest you can take a moderate to high level of risk with your money but less than a Pioneer. You’re prepared for ups and downs for the chance of growing your investment.
Balanced Investor
Your answers point to a middle ground. You can take some risk to give your money a chance to grow while keeping the possibility of losses in mind.
Steady Builder
Your answers point to a more cautious approach. A lower level of risk is a closer fit for how you feel about investing and what you can afford to lose.
Preserver
Your answers point to the most cautious approach in our range. You may be less comfortable with risk or losses may have a bigger impact on your finances. This is our lowest-risk investment style but you can still lose money.
These descriptions are a guide, not a promise, about returns or losses. Every investment style involves investment risk, including Preserver. No investment style guarantees that your money will be protected from losses.
Why are there different investment styles?
People feel different about risk and how investment losses would affect their finances. The investment styles help us understand those differences and recommend a portfolio that fits your circumstances and how you feel about risk.
Your investment style is one part of your portfolio recommendation. It does not automatically assign you to a single portfolio - your plans for the particular investment also matter.