Did you know that your choice of dishes in a restaurant can tell us what kind of investor you are? Or that your driving style can indicate what you're likely to invest in. Yes, we are clever, but also, it's basic psychology.
Your risk appetite is seen in every facet of life. So, what is your risk profile? Take this test and find out. The rules, as always, are simple. All questions can always with a simple 'yes' or 'no'. And remember, there's no right or wrong answer. Ready? There you go.
1. I check the price of my shares at least twice a day.
2. I always stick to the speed limit, even if I’m on a deserted highway.
3. If the price of my stocks falls, my immediate response is to sell.
4. I think a stock market crash is imminent; if not tomorrow, next week.
5. I look for the oxygen mask every time the plane hits a patch of turbulence.
6. If I sell a stock at even a small loss, I don’t think I’ll invest in equities again.
7. I will never go to a theatre without a booking.
8. If a stock does not do as well as I want, I will sell it even if I bought it as a long-term investment.
9. When I hit the road with others I do not let anyone else drive me.
10. I seek advice from at least two people before I invest my money in a bank fixed deposit.
11. When I go to a restaurant, I never order new dishes, especially those with names I don’t understand.
12. I would rather pay higher interest on a fixed rate loan than take a floating rate, where rates can move either way.
RESULTS
Give yourself 1 point for a Yes; 0 for a No
0-4 : You have a high appetite for risk; stocks are definitely for you.
5-8 : You are a nervous investor. Mutual funds are likely to be a good starting point for you to enter the market.
9-12 : Your appetite for risk is low, making you a conservative investor. You are probably most comfortable with fixed-return instruments.
