Questionnaire survey method:
Questionnaire survey is a common method to evaluate risk tolerance. By designing a series of questions, we can understand personal financial situation, investment experience, risk preference, investment objectives and other information. By analyzing the answers to these questions, we can get personal risk tolerance.
The advantage of questionnaire survey is that it is simple and easy to collect a lot of information in a short time. However, the results of the questionnaire survey may be influenced by personal subjective factors. Some people may exaggerate their risk tolerance or don't know much about their investment experience and risk preference.
Portfolio method:
Portfolio method is a method to understand personal risk tolerance by letting individuals choose different portfolios. This method usually includes a series of portfolios, each with different risks and rewards. Individuals can choose their own investment portfolio according to their risk tolerance and investment objectives.
The advantage of portfolio method is that individuals can know their risk tolerance and their requirements for return on investment in actual choices. However, the result of combination method may also be influenced by personal subjective factors, and some people may choose too conservative or too radical combination to meet their psychological expectations.
Benefits of risk tolerance testing:
1, define the investment target:
Through the assessment of risk tolerance, investors can make clear their investment objectives and expected returns. This will help investors to formulate investment strategies that meet their own risk tolerance and investment objectives, and reduce the behavior of blindly following the trend or impulsive investment. The evaluation results can help investors to understand their risk preferences and risk tolerance, so as to choose appropriate investment products or portfolios.
2. Avoid excessive risks:
Risk tolerance assessment helps investors avoid choosing investment products with too high risks. For investments beyond their risk tolerance, investors can consider more carefully or choose to give up, thus reducing possible losses. By understanding their risk tolerance, investors can treat their investments more rationally and avoid blindly pursuing high returns and ignoring potential risks.
3. Optimize asset allocation:
Based on the assessment results of risk tolerance, investors can allocate assets more scientifically. Investors can choose their own investment portfolio according to their risk preference and tolerance, so as to achieve a balance between risk and return. Through rational asset allocation, investors can maintain relatively stable returns in different market environments and reduce the risk concentration of a single asset.