RISK TOLERANCE · NEUTRAL
Balanced
Weighs the chance of gains and the chance of losses equally
My risk tolerance score
41~60 pt band
Balanced
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 generally put gains and losses on the same scale. If there is a chance of a big gain, you naturally accept that you could lose as much, so you do not lean far either way. You tend to look at the evidence and then decide, rather than decide first and look for evidence.
Balance is your strength, but it has a cost: watching without deciding either way and missing both the good times and the bad. Especially when the market moves in one direction for a long time, being neutral is hard to tell apart from standing by.
The most useful habit in this band is keeping a record. Writing down why you got in and which broken condition would change your mind means fewer different decisions the next time the same situation comes up.
Strengths of this style
- Not emotionally tied to one scenario
- Takes good and bad news with similar weight
- Counts gains and losses by the same standard
Where people often stumble
- Putting off decisions can mean passing by both opportunities and risks
- The word balance can cover up having no standard at all
- The center of gravity easily shifts with other people’s opinions
When not to trust this number
A Balanced result does not mean you need not decide anything. Having no standard and looking at both sides lead to very different results.
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.