Personal Portfolio Builder

About the Personal Portfolio Builder

We have devised the Personal Portfolio Builder in conjunction with Morningstar to help you find out the best way to invest your money.

Most investments carry risk. Generally, the more risk you can accept with an investment, the greater the long-term growth you could achieve. Some people are more accepting of investment risks and have longer periods in which to ride out any up and downs in returns. Others are more concerned when their investments fluctuate in value. This is why every investor needs to have a portfolio of investments that is right for them – one that has just the right amount of risk to achieve the best long-term returns without too much to make the investor feel uncomfortable.

Once an optimal risk level is calculated, the investment experts at NorthStar devise a number of optimised investment portfolios which should provide excellent long-term results for each level of risk. Each portfolio is broadly diversified between different investment types and continually reviewed. You can read more about the NorthStar investment philosophy and our investment portfolios.

It is important that you answer each question as honestly as possible and select the answer that best represents how you feel on each particular topic. The Personal Portfolio Builder consists of 12 simple multiple choice questions and should take less than 5 minutes to complete.

Personal Portfolio Builder

Personal Portfolio Builder

Q1: In an effort to grow your wealth, can you afford to lose any money over the next two years?

Q1 *

Yes, I can afford to lose some money in the short-term in the hope of achieving longer-term investment growth.

No, I cannot afford to lose any money at all even if this means I have to accept my investments are likely to provide no investment growth in order to achieve this security.

Q2: When do you expect to start withdrawing money from your investments?

Q2 *

I am already drawing money from my investments or plan to do so within the next 2 years.

2 to 5 years.

6 to 10 years.

11 years or more.

Q3: For how long do you expect to withdraw funds from your investments?

Q3 *

I plan to make a one-off full encashment of my investments.

For less than 5 years.

For 6 to 10 years.

For 11 years or more.

Q4: Which of these portfolios would you prefer to hold?

Q4 *

Portfolio A.

Portfolio B.

Portfolio C.

Portfolio D.

Portfolio E.

Q5: Which portfolio would you prefer to hold?

Q5 *

Portfolio A.

Portfolio B.

Portfolio C.

Portfolio D.

Portfolio E.

Q6: Investments can rise and fall in value over time. Imagine you made an investment and its value fell by 10% over the first year. How would you react?

Q6 *

I would not change my portfolio as I’m focused on long-term returns. I understand that to achieve the best returns means accepting a level of risk and that there will be periods when my investments will fall in value. Short-term losses of this kind don’t concern me too much.

I would wait at least another year before changing to a lower-risk investment strategy that has more stable returns.

I would wait at least another three months before changing to a lower-risk investment strategy that has more stable returns.

I would immediately change to a lower-risk investment strategy that has more stable returns.

Q7: For many investors, the possibility of losing money is a concern. How do you feel about investment losses?

Q7 *

I check the value of my investments quite often so I can sell quickly if they begin to lose money.

Daily losses in the value of my investments make me uncomfortable, but not uncomfortable enough to sell. If losses occur over several months, I would probably sell.

Short-term losses in the value of my investments do not bother me. I would wait an entire year before making changes.

I understand that investments can have occasional negative annual returns. However, I have a higher chance of reaching my investment goals if I stick with my portfolio over the long term. I would not make changes.

Q8: What best describes your response to the following statement: “I am comfortable with investments that may frequently experience large losses in value if there is a potential for higher returns.”

Q8 *

Strongly disagree.

Disagree.

Somewhat agree.

Agree.

Strongly agree.

Q9: Most investments fluctuate year-to-year. Suppose you had invested in a portfolio with the intention of holding it for ten years. If this investment lost value during the first year, after what fall would you consider moving to a lower-risk portfolio?

Q9 *

After a 5% fall in value.

After a 10% fall in value.

After a 15% fall in value.

After a 20% fall in value

I would not move to a lower-risk portfolio.

Q10: Investing involves a trade-off between risk and returns. Historically, investments with higher returns have been associated with greater risk and chance for loss. Alternatively, cautious investments that have had a lower chance for loss, also have yielded lower returns. Based on this description of investment characteristics, which of the following statements best describes your attitude to risk?

Q10 *

I am most concerned with risk. I am willing to accept lower long-term returns in order to limit my chance of loss.

I am willing to accept some risk and the potential for short-term investment losses in an effort to achieve higher returns but prefer a significant portion of my portfolio to be invested in cautious assets.

I am willing to accept moderate risk to achieve higher returns. Minimising risk and maximising returns are of equal importance to me.

I wish to achieve higher returns on my investments. I am willing to accept higher levels of risk and greater potential for short-term investment losses.

I am primarily concerned with maximising the returns of my investments. I am willing to accept a higher level of risk, fluctuations in the value of my portfolio and a significant chance of short-term investment losses.

Q11: Over a longer period, risky investments usually generate greater wealth than less risky investments do. Which of these portfolios do you prefer?

Q11 *

Portfolio A.

Portfolio B.

Portfolio C.

Portfolio D.

Portfolio E.

Q12: Would you like to invest 'ethically'? This will limit your investments to companies and projects that seek to promote environmental, ethical, sustainable and socially responsible causes and exclude companies that promote or produce tobacco, fossil fuels, arms, gambling, animal testing and similar activities.

Q12 *

I want to invest ethically and this is one of my main investment objectives.

I can see some merit in investing ethically, but don’t want to limit my investment opportunities by doing so.

I am not concerned with investing ethically. I just want the best investments to achieve my goals.

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