To each his own… profile
Your investor profile depends on things like your financial situation, your short-, mid- and long-term needs, your investment objectives as well as your tolerance to risk. That’s why it’s unique to you!
Everyone’s financial and family situation are different! Determining your investor profile is a precious (and legally mandated!) exercise that will let your financial security advisor better know you and your needs. It will help you build your trust and ensure you get personalized advice.
The five investor profiles
Traditionally, there have always been three investor profiles. However, we’d like to add two more in order to better represent the full spectrum of investors.
Conservative
This profile is generally associated with people who want secure investments that yield modest returns.
Moderate
This profile is generally associated with people who are willing to tolerate some market fluctuations for a slightly better return.
Balanced
This profile is generally associated with people who want balance between risk and reward.
Growth
This profile is generally associated with those who are ready and willing to tolerate market fluctuations for high returns.
Aggressive
This profile is generally associated with people who are not at all scared of risk. They want high returns at all costs!
So, which profile are you? You may already have a good idea, but you can always use an online questionnaire, like this one (This hyperlink will open in a new tab). by the AMF (Autorité des marchés financiers), to give yourself a better idea.
Call a professional
In Quebec, advisors are required by law to generate an investor profile of all their clients before giving them advice. The AMF also requires that advisors make appropriate follow-ups on their clients’ investment objectives, reviewing them on a regular basis.
It’s also a good idea to speak to your advisor whenever a life event changes your objectives or needs!
Keep them informed
It’s also a good idea to speak to your advisor whenever a life event changes your objectives or needs!
