Are you in a Kiwisaver default scheme?
Does your risk profile match your expectations?
An element of successful investing is paying attention to your risk profile – and understanding what that means for your long-term returns. Your risk profile is about what you want your investments to achieve and your attitude to the risks involved. While this may change over the longer-term, it’s important to understand how you feel about risk before you commit to your investment.
“One of the worst things an investor can do is change their risk profile (which is linked to their investment strategy) because of short term-market moves – you can’t expect to be a high risk investor when markets are booming and a low risk investor when times are tough. The point of a risk profile, or investment strategy, is to ensure your portfolio is structured so you can look past short-term moves to get the result you need.”
By determining your risk profile – such as growth, balanced or conservative – you can understand how comfortable you are with your investment choices, by setting a strategy which is consistent with your risk tolerance.
At Thorners, all clients complete a Risk Profile so that they can gauge their appetite for the various options available and at the end, they have an understanding of why they are investing in a particular fund.
As KiwiSaver Default schemes are conservative, they may not match your investment expectations. Contact us to discuss your options.
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