The investment questionnaire serves primarily to protect the investor, who, based on several questions, finds out which risk profile he belongs to.
A small investor can use several tools to decide where to invest his money. The investment questionnaire is one of the basic tools. By carefully and above all truthfully filling in it, you will get quality initial conditions for your further use.
A very conservative investor is one who wants security for his money. Whatever the slightest risk is the blackest black moth for him. He does not want to lose, even if it is a short-term matter and it would be a minimal loss.
Like a very conservative investor, there is also an investor who has a conservative profile in the investment questionnaire. This type of investor also prefers the certainty of profit over its amount. Unlike his very conservative counterpart, he is willing to allow short-term fluctuations in investment. However, he does not expect any above-average high yields.
A person who comes out with a balanced risk profile in the investment questionnaire is familiar with the fact that investments bring with them risks regarding the amount of deposits. This goes hand in hand with higher returns being redeemed by higher volatility (fluctuations) in the underlying assets. If he decides to invest, then knowing that the value of the investment may fluctuate in the short term.
A dynamic investor wants to achieve above-average appreciation. However, unlike a balanced and aggressive investor, it requires risk mitigation, on which, in the end, it does not place much emphasis. Its goal is higher returns.
The last type of risk profile that you can get after filling out the investment questionnaire is an aggressive type of investor. He prefers the highest possible profit and is willing to take a higher risk. In its long-term investment strategies, it seeks the highest possible return. He can accept significant short-term and medium-term declines in his investments.
An investment questionnaire is not everything
Remember that this list is purely indicative and it can easily happen that even if you find out, for example, that you have a conservative risk profile, you can boldly invest in equity mutual funds. In addition to the risk profile, it is also important how much of the financial assets you will invest. Whether it will be one percent or maybe half. However, an investor who has a dynamic or aggressive risk profile may use conservative deposit products for part of its funds. These include, for example, term deposits.