Education Centre

Learning path for self-directed investors who want to know more about financial markets and investing

Determining your Investor Profile

Determine your investor profile and your ideal asset mix
If your portfolio is well diversified in keeping with your investor profile, you can reduce the risks of exposure to a single market or of a negative performance by a given asset class.

Your investor profile is based on several factors, including your investment horizon and risk tolerance. Once your profile has been determined, you'll know the required asset mix for achieving your objectives within your chosen timeframe. However, don't forget that your investor profile may change over time. Moreover, if your financial objectives change, your investor profile could change depending on the related time horizon and the relative importance of your objectives. That's why your investor profile should be reviewed at least once a year.


What is your investor profile?
Account type
I would like to obtain an investor profile for my account: :    Registered      Non-registered

Project amount
What is the total amount you wish to invest? $
Would you like to keep a portion in cash (vacation, emergencies, etc.)? Yes No 
Would you like to manage your own portfolio or part of it?
Yes No 

Investment horizon
How long would you like to invest the total amount (investment horizon)?
1 to 2 years
2 to 4 years
5 to 9 years
10 years and more

Financial situation
How would you describe your current financial situation?
My expenses exceed my income and I have to make regular withdrawals from my investments.
My income exceeds my expenses, but sometimes I have to withdraw from my investments.
My income exceeds my expenses and I may occasionally have to withdraw from my investments.
My income exceeds my expenses and I never have to withdraw from my investments.

Investment goals
To obtain potentially higher returns, you will have to allow for more fluctuations in the value of your investments. Which of the following answers best describes your investment goals?
Return on investment is a priority for me and I'm willing to accept a higher risk in order to maximize the possibility of achieving my long-term goals.
The return on my short-term investments and their stability are equally important to me.
The stability of my short-term investments is important to me.
The stability of my short-term investments is a priority for me, even if the potential return is lower.

Experience
Have you ever invested in the stock market (or mutual funds)?
I have invested in the stock market and was not uncomfortable with the fluctuations in the value of my investments.
I have invested in the stock market, but the value of my investments never dropped significantly.
I have invested in the stock market and was uncomfortable with the fluctuations in the value of my investments.
Never, but I'm ready to learn and accept fluctuations in the value of my investments.
Never, and I'm not very familiar with how it operates.

Risk tolerance
How much of a decline in value would you be willing to accept temporarily in the event of any major financial turbulence?
I would accept a decline of approximately 20% or more.
I would accept a decline of approximately 10% to 20%.
I would accept a decline of approximately 5% to 10%.
I would accept an occasional decline of less than 5%.
I would only accept minimal declines.

Scenario
Consider the following example. You invest $10,000 with an investment horizon of several years. With which of the following scenarios would you be most comfortable after three years? (If your horizon is less than two years, do not answer)

  Result
I have invested in the stock market and was not uncomfortable with the fluctuations in the value of my investments.

Questions and comments


  
  
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