What are Your Investment Preferences?
|Low risk (Safety)||_____|_____||High risk|
|Low rate of return||_____|_____||High rate of return|
|Low capital growth||_____|_____||High capital growth|
|High capital preservation||_____|_____||Low capital preservation|
|Not very liquid||_____|_____||Highly liquid|
|Shortterm maturity||_____|_____||Longterm maturity|
|No minimum investment||_____|_____||High minimum investment|
|Low costs and fees||_____|_____||High costs and fees|
|Little or no management required||_____|_____||Much management required|
|Present income||_____|_____||Capital growth|
Figure 5. What are Your Investment Preferences?
Adapted from: Hogarth, Jeanne and Swanson, Josephine (1987). TOPICs, Investment basics, Cornell University, 1987.
The exercise above can be downloaded:
- What are Your Investment Preferences? Worksheet (pdf format)
- What are Your Investment Preferences? Worksheet (MS Excel format)
If others are sharing investment responsibility with you, ask them to complete it as well.
- Review your responses carefully.
- Check for inconsistencies in the preferences you have indicated. (For example, do you prefer things that are unlikely to come together, e.g., low risk and high return?)
- Work to understand and resolve inconsistencies and differences in order to assure that your overall investment strategies and asset allocation are consistent with both your needs and your preferences.