Risk Tolerance

The Risk Profiling Questionnaire presents a number of different factors which assess your willingness to take on investment risk. Across the questions, you will be assigned a risk tolerance which matches your investment risk preferences, out of six different risk tolerance levels as defined below:

Risk Profiling Questionnaire
Risk tolerance	Definition
Secure	You generally do not want to take any investment risk, since you can accept no investment loss. Financial products with an investment element are not suitable for you. Products that are potentially suitable for you are likely to produce returns that are based on prevailing interest rates which may or may not keep pace with inflation.
Very Cautious	You are generally comfortable with achieving minimal level of return potential on your investment coupled with minimal risks. Capital values of products that are potentially suitable for you can fluctuate and may fall below your original investment. In normal market conditions fluctuation is expected to be minimal (although this is not guaranteed), and you are comfortable with this level of fluctuation. Investment products with risk rating 1 are likely to be suitable for you.
Cautious	You are generally comfortable with achieving a low level of return potential on your investment coupled with a low level of risk. Capital values of products that are potentially suitable for you can fluctuate and may fall below your original investment. In normal market conditions fluctuation is expected to be low (although this is not guaranteed), and you are comfortable with this level of fluctuation. Investment products with risk rating 2 or below are likely to be suitable for you.
Balanced	You are generally comfortable with achieving a moderate level of return potential on your investment coupled with a moderate level of risk. Capital values can fluctuate and may fall below your original investment. Fluctuation is expected to be higher than products that are suitable for investors in lower risk tolerance categories, but not as much as for higher risk tolerance categories. Investment products with risk rating 3 or below are likely to be suitable for you.
Adventurous	You are generally comfortable with achieving a high level of return potential on your investment coupled with high level of risk. Capital values can fluctuate significantly and may fall quite substantially below your original investment. You understand the risk/reward equation, and are comfortable with this level of fluctuation. Investment products with risk rating 4 or below are likely to be suitable for you.
Speculative	You are generally comfortable with maximizing your return potential on investment coupled with maximized risk. Capital values can fluctuate widely and may fall substantially below your original investment. You understand the risk/reward equation, and are comfortable with this level of fluctuation. Investment products with risk rating 5 or below are likely to be suitable for you.

Risk Profiling Questionnaire
Risk tolerance	Secure
Definition	You generally do not want to take any investment risk, since you can accept no investment loss. Financial products with an investment element are not suitable for you. Products that are potentially suitable for you are likely to produce returns that are based on prevailing interest rates which may or may not keep pace with inflation.

Risk tolerance	Very Cautious
Definition	You are generally comfortable with achieving minimal level of return potential on your investment coupled with minimal risks. Capital values of products that are potentially suitable for you can fluctuate and may fall below your original investment. In normal market conditions fluctuation is expected to be minimal (although this is not guaranteed), and you are comfortable with this level of fluctuation. Investment products with risk rating 1 are likely to be suitable for you.

Risk tolerance	Cautious
Definition	You are generally comfortable with achieving a low level of return potential on your investment coupled with a low level of risk. Capital values of products that are potentially suitable for you can fluctuate and may fall below your original investment. In normal market conditions fluctuation is expected to be low (although this is not guaranteed), and you are comfortable with this level of fluctuation. Investment products with risk rating 2 or below are likely to be suitable for you.

Risk tolerance	Balanced
Definition	You are generally comfortable with achieving a moderate level of return potential on your investment coupled with a moderate level of risk. Capital values can fluctuate and may fall below your original investment. Fluctuation is expected to be higher than products that are suitable for investors in lower risk tolerance categories, but not as much as for higher risk tolerance categories. Investment products with risk rating 3 or below are likely to be suitable for you.

Risk tolerance	Adventurous
Definition	You are generally comfortable with achieving a high level of return potential on your investment coupled with high level of risk. Capital values can fluctuate significantly and may fall quite substantially below your original investment. You understand the risk/reward equation, and are comfortable with this level of fluctuation. Investment products with risk rating 4 or below are likely to be suitable for you.

Risk tolerance	Speculative
Definition	You are generally comfortable with maximizing your return potential on investment coupled with maximized risk. Capital values can fluctuate widely and may fall substantially below your original investment. You understand the risk/reward equation, and are comfortable with this level of fluctuation. Investment products with risk rating 5 or below are likely to be suitable for you.

Product risk level for different product categories is derived based on our quantitative evaluation of their respective price volatility, issuer risk, contractual maturity and qualitative factors. The product risk level assigned is designed to match with the amount of risk you are willing to take as per your risk tolerance.

Descriptions of product risk levels
Risk Level of Investment Products Suitable for Consideration	Descriptions
Products with NO investment risk	The product has no investment element and hence no price volatility.
Low (1)	Minimal chance of losing a significant portion of your capital over the term of the investment (although this is not guaranteed). Expected to demonstrate minimal price fluctuations over short periods of time.
Low to Medium (2)	Low chance of losing a significant portion of your capital over the term of the investment (although this is not guaranteed). Expected to demonstrate moderately low level of price fluctuations over short periods of time.
Medium (3)	Moderate chance of losing a significant portion of your capital over the term of the investment (although this is not guaranteed). Expected to demonstrate moderate level of price fluctuations over short periods of time.
Medium to High (4)	Moderately high chance of losing a significant portion of your capital over the term of the investment. Expected to demonstrate moderately high level of price fluctuations over short periods of time.
High (5)	High chance of losing a significant portion of your capital over the term of the investment. Expected to demonstrate high level of price fluctuations over short periods of time.

Descriptions of product risk levels
Risk Level of Investment Products Suitable for Consideration	Products with NO investment risk
Descriptions	The product has no investment element and hence no price volatility.

Risk Level of Investment Products Suitable for Consideration	Low (1)
Descriptions	Minimal chance of losing a significant portion of your capital over the term of the investment (although this is not guaranteed). Expected to demonstrate minimal price fluctuations over short periods of time.

Risk Level of Investment Products Suitable for Consideration	Low to Medium (2)
Descriptions	Low chance of losing a significant portion of your capital over the term of the investment (although this is not guaranteed). Expected to demonstrate moderately low level of price fluctuations over short periods of time.

Risk Level of Investment Products Suitable for Consideration	Medium (3)
Descriptions	Moderate chance of losing a significant portion of your capital over the term of the investment (although this is not guaranteed). Expected to demonstrate moderate level of price fluctuations over short periods of time.

Risk Level of Investment Products Suitable for Consideration	Medium to High (4)
Descriptions	Moderately high chance of losing a significant portion of your capital over the term of the investment. Expected to demonstrate moderately high level of price fluctuations over short periods of time.

Risk Level of Investment Products Suitable for Consideration	High (5)
Descriptions	High chance of losing a significant portion of your capital over the term of the investment. Expected to demonstrate high level of price fluctuations over short periods of time.

You may consider investment products with risk levels commensurate with your investment risk tolerance according to the table below.

Risk tolerance and investment products comparison
Risk tolerance	Risk level(s) of investment products suitable for consideration
Secure	Products with NO investment risk
Very Cautious	1
Cautious	1 - 2
Balanced	1 - 3
Adventurous	1 - 4
Speculative	1 - 5

Risk tolerance and investment products comparison
Risk tolerance	Secure
Risk level(s) of investment products suitable for consideration	Products with NO investment risk

Risk tolerance	Very Cautious
Risk level(s) of investment products suitable for consideration	1

Risk tolerance	Cautious
Risk level(s) of investment products suitable for consideration	1 - 2

Risk tolerance	Balanced
Risk level(s) of investment products suitable for consideration	1 - 3

Risk tolerance	Adventurous
Risk level(s) of investment products suitable for consideration	1 - 4

Risk tolerance	Speculative
Risk level(s) of investment products suitable for consideration	1 - 5

You should take extra care in assessing products with Product Risk Level higher than your Risk Tolerance as they may be unsuitable for you. Even products with Product Risk Level which matches or is lower than your Risk Tolerance may not necessarily be suitable. Factors other than your Risk Tolerance are relevant to suitability.