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Investment Risk Assessment

Complete this assessment to ensure you remain invested in the optimal investment portfolio

Investment Risk Assessment (Update)

Investment Objectives

Have your investment objectives changed since your last investment risk assessment?

Risk Assessment

Q1. In an effort to grow your wealth, can you afford to lose any money over the next two years?
Q2. When do you expect to start withdrawing money from your investment?
Q3. Once you begin withdrawing money from your investment, how long do you expect to continue withdrawing funds?
Q4. Which of these portfolios would you prefer to hold?

Q5: Which portfolio would you prefer to hold?

Q6: You have made an investment of £10,000 and its value falls by 20% to £8,000. Assuming you still have 10 years until you begin withdrawals, how would you react?
Q7: For many investors, the possibility of losing money is a main concern. How do you feel about investment losses?
Q8: Choose the answer that best describes your response to the following statement: "I am comfortable with investments that may frequently experience large losses in value if there is a potential for higher returns." Does this describe you?
Q9: Most investments fluctuate year-to-year. Suppose you invested £10,000 in a portfolio with the intention of holding it for ten years. If this investment lost value during the first year, at what value of your initial £10,000 investment would you sell and move to a more stable investment?
Q10: Investing involves a trade-off between risk and returns. Historically, investments with higher returns have been associated with greater risk and chance for loss. Alternatively, cautious investments that have had a lower chance for loss, also have yielded lower returns. Based on this description of investments characteristics, which of the following statements best describes your attitude to risk?
Q11: Over a longer period, risky investments usually generate greater wealth than less risky investments do. Which of these portfolios do you prefer?

Q12: What is the primary purpose of your investment?
Q13: Would you like your investments to invested 'ethically' - avoiding companies that pollute and are involved in certain industries (weapons, tobacco, alcohol, etc.) and seeking companies that are involved in positive change?

Capacity for Loss Assessment

Capacity for loss is a consideration of your ability to sustain a loss in respect of a particular investment. It is important that you do not expose yourself to a greater potential investment loss than you can afford. For example, we would generally consider that someone who was entirely dependent on a modest-sized investment to provide all their income would have a lower capacity for loss than a multi-millionaire who is investing to fund a new speedboat.
Do you believe that your 'capacity for loss' may have changed since your last investment risk assessment?

Investment Expertise

Do you believe that your 'investment expertise' may have changed since your last investment risk assessment?

Additional Notes

Do you have any further notes, comments or information that you believe may help us complete your investment risk assessment?


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