What is a risk tolerance questionnaire and how does it affect investment decisions?

27 Sept 2026, 12:58
Q A Reader Asker

What is a risk tolerance questionnaire and how does it affect investment decisions?

A Moaju Team Answered by

A risk tolerance questionnaire asks how comfortable you would be with potential investment losses and market ups and downs. Your answers may help indicate an appropriate level of investment risk, but the result is not a guarantee of performance or a substitute for assessing your financial goals, time frame and capacity to absorb losses. Your attitude to risk can also change as your circumstances change, so it is sensible to review it periodically. If you are unsure how to interpret a questionnaire, consider speaking to a regulated financial adviser and check the information with the relevant provider.

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