How to Recognise Your Investment Risk Profile?
The specially devised "Questionnaire on Investment Preference" by BOCHK can help you understand your investment risk profile.
The questionnaire is built the assumptions that an appropriate risk level will depend on your investment objective, investment horizon, liquidity needs, investment knowledge and experience, attitude towards risk and return expectation. The investment risk profile is divided into 1 to 5 levels where the investment products involving higher risk are only suitable for those customers with higher risk appetite. The questionnaire design and scoring methods are based on the findings from empirical research. Your answers have material impact on the indicative result of this questionnaire. You must provide information that is valid, true, complete, accurate and updated where your failure in doing so would materially affect the accuracy and reliability of our suitability assessment.
You will learn your risk profile level as reference upon completion of the questionnaire, enabling you further select suitable investment products to code with your personal situation in next step:
| Which Investment Risk Profile Level you belong to? | Investment Risk Acceptance Magnitude | |
|---|---|---|
| 1 | Conservative |
|
| 2 | Moderately Conservative | |
| 3 | Moderate | |
| 4 | Moderately Aggressive | |
| 5 | Aggressive | |
Description of each Risk Profile Level
| 1 | Conservative | In general, you are a conservative investor whose primary aim is to preserve capital. You are risk adverse on investment. |
| 2 | Moderately Conservative | In general, you are a moderately conservative investor whose primary aim is to look for a return slightly above interest rate of bank deposits. You prefer to take low-to-medium investment risk and accept modest fluctuation of capital values with the possibility of facing occasional short-term loss. |
| 3 | Moderate | In general, you are a moderate investor who wants to achieve a return that is much better than the interest rate of bank deposits and a moderate growth of capital. You prefer to take medium investment risk and accept moderate fluctuation of capital values with the possibility of facing moderate short-term loss. |
| 4 | Moderately Aggressive |
In general, you are a moderately aggressive investor who is eager to earn a return comparable to the global stock market indexes so as to achieve high capital appreciation. You can accept high fluctuation of capital values and are willing to bear high risk of capital loss in exchange for a potentially significant return. |
| 5 | Aggressive | In general, you are an aggressive investor who is eager to earn a return remarkably higher than global stock market indexes so as to achieve highest possible capital appreciation. Minimizing risks is not your primary concern. You can accept leveraged investment and are willing to bear significantly high risk of capital loss in exchange for a potentially substantial return. |
Your investment risk profile varies with factors like your financial situation and investment experience etc. at different life stages. Remember to review and perform "Questionnaire on Investment Preference" regularly to learn your latest risk profile.
You can fill in / update "Questionnaire on Investment Preference" via the following channels:
Description of each Product Risk Level
You should select suitable investment product according to your risk profile level, financial situation, investment objectives and experience. We provide a series of investment products ranging from different risk levels for your selection.
The Bank classifies investment products into 5 levels (1 = Low Risk, 2 = Low to Medium Risk, 3 = Medium Risk, 4 = Medium to High Risk, 5 = High Risk) based on the Bank’s internal assessment, thereby assisting customers to understand and assess each product’s appropriateness in relation to their own risk appetite. The internal assessment of various factors to calculate the risk of maximum loss, includes but not limited to, the asset class that the product belongs to, currency risk, price risk, credit risk, complexity risk and liquidity risk etc., and is for reference only. The product risk rating will be assessed quarterly, but the Bank may revise the risk rating assigned to a product in case of event triggering without any prior notice.
| 1 | Low | Suitable for investors who are risk-averse and look for capital protection |
| 2 | Low to Medium | Suitable for investors who can accept low-to-medium investment risks in exchange for a return slightly above deposit rate |
| 3 | Medium | Suitable for investors who attempt to attain a return higher than inflation rate and a moderate capital growth, and are willing to bear medium investment risks |
| 4 | Medium to High | Suitable for investors who seek for high capital gain and are willing to bear medium-to-high investment risk |
| 5 | High | Suitable for investors who are eager to maximize the attainable return, irrespective of the risk involved |
For enquiry, please call our Personal Customer Service Hotline at +852 3988 2388 or visit any of our branches.
Important Notes
The following risk disclosure statements may not disclose all the risks involved. You should undertake your own research and study before you trade or invest. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objectives.
Risk Disclosure Statement
The above information is for reference only. This webpage does not constitute any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit. Although investment may bring profit opportunities, each investment product or service involves potential risks. Due to dynamic changes in the market, the price movement and volatility of investment products may not be the same as expected by you. Your fund may increase or reduce due to the purchase or sale of investment products. The value of investment funds may go up as well as down and the investment funds may become valueless. Therefore, you may not receive any return from investment funds. Part of your investment may not be able to liquidate immediately under certain market situation. The investment decision is yours but you should not invest in these products unless the intermediary who sells them to you has explained to you that these products are suitable for you having regard to your financial situation, investment experience and investment objectives. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product. Investment involves risks. Please refer to the relevant fund offering documents for further details including risk factors. If you have any inquiries on this Risk Disclosure Statement or the nature and risks involved in trading or funds etc, you should seek advice from independent financial adviser.
This webpage is issued by Bank of China (Hong Kong) Limited. The contents of this webpage have not been reviewed by the Securities and Futures Commission in Hong Kong.
