The Risk Profile Questionnaire (RPQ) will determine your risk profile as an investor:
|Conservative||Willing to accept lower returns for a higher degree of liquidity or stability|
|Moderate||Willing to endure short-term loss for the prospect of better long-term growth opportunities|
|Aggressive||Willing to risk more money for the possibility of better returns|
Note: Once completed, you cannot retake the Risk Profile Questionnaire (RPQ) nor change your Risk Profile/Risk Appetite on GFunds until after three years or if you are prompted.
Your Risk Profile/Risk Appetite serves as a guide for investing in different funds. All funds include a Risk Rating that identifies the fund's level of risk. You can still invest in funds that have a Risk Rating higher than your Risk Profile/Risk Appetite. There will only be a waiver prompt on the GCash app that you have to confirm when placing a buy order.
Professional fund managers recommend investing:
- 20% or less of your portfolio in funds with higher risk rating than your risk appetite
- 80% or more of your portfolio in funds within your risk appetite or profile
Here are the questions you will encounter in the Risk Profile Questionnaire:
|What is your net worth? (approximate)||Your net worth is the total value of your assets (savings account, checking account, investments, etc.) minus your total debts (mortgage payments, car loans, etc.).|
|What is the source of your funds?||Your source of funds is where your money for investing will come from. If the source of your funds is not stated, kindly specify under the “Others” checkbox.|
|What is the purpose of your investment?||The purpose of your investment is the reason why you want to invest. Here are the options available and what they mean.
|How much do you see yourself investing?||The amount of money you plan to invest or are comfortable with investing|
|How frequently do you see yourself investing?||Investing is not recommended as a one-time payment only. It is always best to grow your wealth by investing regularly.|
You are investing for a period of...
|Investment horizon is the amount of time you’ll be keeping your investment in your GFunds account before you convert it to cash.|
How much of a drop/loss in the value of your investment can you accept?
|A risk scenario at 0% is considered very low risk, whereas more than 15% is high risk. Anything in between is considered moderate risk.|
|Your investment principle||Your investment principle will determine the amount of risk you are willing to take for a certain amount of return.|
|How knowledgeable are you as an investor?||The level of information you have on the act of investing|
|Which of the following have you invested in?||
Do you have a regular liquidity requirement?
|You have a regular liquidity requirement if you will get cash from your investment regularly.|