How well do you understand your investor’s risk capacity?

Simply understanding a potential investor’s risk tolerance is not enough, you also need to know if they really want their investment

Gillan Williams
Author Gillan Williams
Date 12th August 2016

An investor may be shown to have a specific tolerance to risk and ultimately loss, but are they capable of enduring loss without a major impact on their lifestyle? By not taking into this into account, you could be offering the wrong investment products.

The indications of the Risk Capacity test will either reassure you that the customer is being offered the appropriate investments or will provide you the opportunity to discuss their expectations and suitability in greater detail, where you can offer a suitable alternative. By asking the right questions, you will gain insight into your customer’s personal situation, which should affect what type of investment is right for them.

Your customer might demonstrate either a high level or modest level of knowledge and experience in the investment markets. You need to take this into account, but how do you measure this? We offer a questionnaire that effectively tests the customer’s background as an investor, helping you offer the best investment solution for them.

The system we offer has been developed through decades of research and stringent testing. By using the Oxford Risk Raking system, you can rely on the fact that you are using the most advanced system in the world.

To get in touch for more information and a free trial of our online profiling platform, click here

 

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