Client profiling - Record - Investment objectives - Structured entry

To determine the client's investment objectives, enter how they assess their risk tolerance, how long they expect to hold the security or portfolio and which investment objective they see as primary. The application will use this information to determine a possible investment strategy that corresponds to a risk class. The following options are available to define the investment objectives:

Define investment objectives

Field	Options
Risk tolerance	Specify the client's risk tolerance. The following choices are available: Conservative: Preservation of capital; primarily focused on safety Moderate: Higher return expectations correspond to higher risk tolerance Aggressive: High return expectations correspond to high risk tolerance
Investment horizon	Specify the client's investment horizon. The following choices are available: Short-term: Up to 1 year Medium-term: more than 1 year – up to 5 years Long-term: more than 5 years
Primary investment objective	Select the client's primary investment objective. The following choices are available: Long-term liquidity Retirement Asset diversification Asset growth Speculation

Field

Options

Risk tolerance

Specify the client's risk tolerance. The following choices are available:

Conservative: Preservation of capital; primarily focused on safety
Moderate: Higher return expectations correspond to higher risk tolerance
Aggressive: High return expectations correspond to high risk tolerance

Investment horizon

Specify the client's investment horizon. The following choices are available:

Short-term: Up to 1 year
Medium-term: more than 1 year – up to 5 years
Long-term: more than 5 years

Primary investment objective

Select the client's primary investment objective. The following choices are available:

Long-term liquidity
Retirement
Asset diversification
Asset growth
Speculation

Risk/return diagram

After selecting the investment objectives, click the "Refresh" button. The risk/return diagram now shows the investment strategy determined from investment objectives given by the client. Below the diagram, you find an explanation on the determined strategy including the annual yield and the risk of loss over the last five years.