latest Content

Take the Risk and Suitability test – part 1

Take the test. How accurately can you risk-profile these two funds compared to your fellow advisers? 

With the FCA focussed on continuous suitability of investments in relation to investor risk profiles, advisers have a greater need to know that the funds they are recommending for clients will do what they say on the tin and stay within a defined risk profile.

Rathbone Unit Trust Management devised the following test as part of a recent research project into the use by advisers of risk-rated and risk-targeted solutions.

Try your hand at risk profiling the following two funds against 10 risk categories and then follow the link to see how other advisers assessed these funds.

Fund 1: How do you rate Fund 1 against the following risk categories? Choose one.

 

Risk & Suitability Fund 1Lowest Risk
Very Low Risk
Low Risk
Lowest Medium Risk
Low Medium Risk
High Medium Risk
Highest Medium Risk
High Risk
Very High Risk
Highest Risk



Now try your hand at risk profiling Fund 2:

Risk & Suitability Fund 3

 

 

 

 

 

 

How do you rate Fund 2 against the following risk categories? Choose one.

Lowest Risk
Very Low Risk
Low Risk
Lowest Medium Risk
Low Medium Risk
High Medium Risk
Highest Medium Risk
High Risk
Very High Risk
Highest Risk

To find out how your fellow advisers rated these funds click here.

Our thanks to Rathbone Unit Trust Management for providing the test and the results, which formed part of its research into risk-rated and risk-targeted solutions in a post-RDR world, conducted by CoreData Research UK.

 

 

 

More Articles Like This