What’s your investment profile?

Discover your risk tolerance before you commit to an investment strategy.

How you invest your money is a personal decision, based on many factors. So, before you jump into the market or make changes to your existing portfolio, it can be helpful to work with a Cooperators financial representative. Together, you can determine your investment profile, or risk tolerance, and select the right investments for your situation. And, with that, you’ll have a strategy for staying on track toward achieving your goals.

Here are some questions your financial representative may ask to better understand your needs, goals, and preferences

  1. Why do you want to invest to buy a home, save for a child’s education, build your nest egg? Maybe it’s a mix of reasons?
  2. When will you need access to the money? For example, in less than five years, between five and 10 years, or more than 10 years from now?
  3. How comfortable are you with market risk? How well could you endure investment losses alongside potential gains?
  4. What is your capacity to take on risk? The stability of your income, the value of your current assets, and outstanding debt should all be considered.

Discussing your financial goals, investing timelines and comfort around market risk will help you, and your financial representative, determine which of the following investment profiles is most appropriate for you.

Investment profiles

Safety

If your primary objective is to preserve your capital, or if you have a relatively short time to recover from market losses, you may fit the safety profile. Portfolios in this category invest mainly in money market funds, guaranteedinterest certificates, and highinterest savings accounts, which pay a fixed amount of interest, and return your principal upon maturity.

Safety Investment type: Money market/GIC/HISA Percentage: 100%
Safety - percentage of investments in your portfolio
Investment Type Percentage
Money market/GIC/HISA 100%

Very conservative

If you value income more than growth, have a shorter time frame for your investments to grow and want to ensure that your funds are accessible for retirement or other purchases, you may fit the very conservative profile. This profile invests in 80% fixed income and 20% equities.

Very conservative 80% Fixed income 20% Equity
Very Conservative - percentage of investments in your portfolio
Investment Type Percentage
Fixed income investments 80%
Equity investments 20%

Conservative

If you’re comfortable with modest fluctuations in the yeartoyear value of your portfolio, if you have a shorter time frame for your investments to grow, and if you want to ensure that your funds are accessible for retirement or other purchases, you may fit the conservative profile. This profile invests in 60% fixed income and 40% equities.

Conservative 60% Fixed income 40% Equity
Conservative - percentage of investments in your portfolio
Investment Type Percentage
Fixed income investments 60%
Equity investments 40%

Moderate

If you’re seeking a balance of income and growth and can tolerate moderate fluctuations in the value of your portfolio, in exchange for potentially higher longterm returns, you may fit the moderate profile. This profile invests in 60% equities and 40% fixed income.

Moderate 40% Fixed income 60% Equity
Moderate - percentage of investments in your portfolio
Investment Type Percentage
Fixed income investments 40%
Equity investments 60%

Aggressive

If you’re a growthoriented investor seeking the cushioning effects of some fixedincome securities and can withstand substantial yeartoyear fluctuations in the value of your portfolio, in exchange for potentially higher longterm returns, you may fit the aggressive profile. This profile invests in 80% equities and 20% fixed income.

Aggressive 20% Fixed income 80% Equity
Aggressive - percentage of investments in your portfolio
Investment Type Percentage
Fixed income investments 20%
Equity investments 80%

Very aggressive

If you can tolerate a high degree of risk, can hold your investment for 10 years or more, and can withstand substantial yeartoyear fluctuations in the value of your portfolio in exchange for potentially higher longterm returns you may fit the very aggressive profile. This profile caters to knowledgeable, growthoriented investors looking to diversify across fundmanagement styles, and invests in 100% equities.

Very aggressive 100% Equity
Very Aggressive - percentage of investments in your portfolio
Investment Type Percentage
Equity investments 100%

While it’s wise to match your portfolio to your investment profile, don’t forget that your needs can change as life unfolds. It’s important that you and your financial representative regularly review your profile to ensure that it continues to reflect your situation and preferences. 

Talk to us today

Need help choosing the right investment solutions for your profile? Connect with a Cooperators financial representative near you.