RISK TOLERANCE · CAREFUL
Cautious
A little swing is fine, but a big break is not
My risk tolerance score
21~40 pt band
Cautious
out of 24 → on a 100-point scale
- 0~20SafetyPrefers to avoid any situation where the principal shrinks
- 21~40CautiousA little swing is fine, but a big break is not
- 41~60BalancedWeighs the chance of gains and the chance of losses equally
- 61~80ActiveAccepts considerable swings for the return they expect
- 81~100AggressiveDislikes missing an opportunity more than big swings
What it means
You lean toward protecting the principal, yet stopping at deposit interest feels like too little. You are ready to accept some ups and downs, but there is a clear line to how far, and you generally know that your judgment blurs once it is crossed.
What often happens in this band is that the line quietly moves with circumstances. You think you can bear 10%, and when it actually falls 10% you decide to wait a little longer, and by 20% you can no longer let go. Writing down in advance, as a number, how much you can bear is far more realistic than trying to change your nature.
When looking at a company, you check first whether its profits are steady rather than its growth story. In this band, how little it loses in bad times is more important information than how much it earns in good times.
Strengths of this style
- Does not bet everything at once but goes in step by step
- Does not overextend after a gain
- Generally knows the line they can bear
Where people often stumble
- The line they can bear quietly moves with circumstances
- A pattern can repeat of exiting after small falls and being unable to exit after large ones
- Collecting only safe-looking stocks can end up concentrated in one industry
When not to trust this number
Cautious is the most common result and also the band most easily shaken. Being in the middle also means you can be pushed either way.
This score records your answers at this moment. Long-standing research on risk tolerance has pointed out again and again that the same person answers differently in rising and falling markets. Ideally the score would be the same whichever way the market moves, but often it is not.
Tolerance and capacity also differ. Saying you can bear a 20% fall is a very different thing from being fine if money you need in a year shrinks by 20%. Even with a high score, when you need the money comes first.
This questionnaire does not tell you what to hold or how much. Risk tolerance is the starting point of a decision, not its conclusion.
Metrics to check first in this band
More on Jupick
This assessment is reference content that describes an investing style. It is not a suggestion to trade any stock or product and not investment advice. Investment decisions and their responsibility rest with you.