Aviva Investment Suitability Tool

How does this tool work?

We bring you through five steps to help you understand what sort of investment is likely to be most suitable for you.

Please tick the boxes below to see full explanation here >

What do we mean by Risk?
A few questions
Investment suitability
Validation
Fund options & Report

There are a number of different types of risk you need to consider before making an investment. In the first step we take a look at some of these risks.

1. What do we mean by risk?

There are a number of different types of risk you need to consider before making an investment. Here are just a few to think about.

Market Risk
Inflation Risk
Counterparty Risk
Liquidity Risk
Concentration Risk

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Market Risk

This is the first thing most people think about when they consider investment risk.

The risk that markets may fall in value and you may lose some of your initial investment.

How would you feel if this happened?

A few questions: 1. Investment Experience

We are now going to ask you 5 simple questions so we can understand a bit more about your investment experience and attitude to risk

How experienced an investor are you?

I am not experienced; I have rarely invested in the past
I have invested before, but only in relatively simple products
Although I am not an expert, I do understand how markets work and am comfortable in my ability to make most investment decisions
I have made many investments in the past and would consider myself an experienced investor

A few questions: 2. Importance of this Investment

How important to you, is the investment you are considering now?

I am very reliant on this investment and would be in trouble if I lost any of it
I have other funds/sources of income but would feel pain if I suffered significant losses now
I will not be reliant on this investment in the next 10 years, but I expect I will be after that
These are surplus funds and I am unlikely to be dependent on them

A few questions: 3. Safety of this Investment

Thinking of the investment you are about to make, do you agree/disagree with the following statement: 'I want my investment to be safe even if it means lower returns in the long run'

I strongly agree with this statement
I tend to agree with this statement
I neither agree nor disagree with this statement
I tend to disagree with this statement
I strongly disagree with this statement

A few questions: 4. Risk and Return Expectations

What risk and return expectations do you have for this investment?

I would only invest if I had a guarantee of getting at least my original investment back
I want to earn a little more than I could on deposit. I would only take on a small amount of risk to achieve this
I am looking for steady long term growth and am prepared for some short term fluctuations in the value of my investment
I am looking for strong long term growth and understand this could lead to large fluctuations in the value of my investment
I want to maximise returns and am very comfortable taking on a high degree of risk to achieve this

A few questions: 5. Attitude to Short Term Loss

In order to achieve higher returns you need to be comfortable with short term loses.

What is the maximum percentage loss you could tolerate in any 12 month period, before becoming uncomfortable?

Please click and drag the slider button below to indicate your maximum percentage loss.

0%

40%

3. Investment Suitability

Based on your responses, a very conservative investment might be suitable for your needs.

You are likely to need an investment which gives some form of capital protection and should talk to your Financial Broker or Adviser about possible options.

When looking at products which provide capital protection you need to be particularly aware of:

Counterparty Risk
Inflation Risk
Liquidity Risk

3. Investment Suitability

Risk Rating:

Based on your responses, an investment ranked out of 7 on our Risk Scale might be suitable for your needs. We would describe such an investment as Risk.

Although an investment's risk can change over time, we can give you a feel for the types of return an investment with a risk rating of may demonstrate if its risk stays constant.

We do this over the next few screens which will help you decide if it's the right investment for you.

How we measure Risk

We use the European Securities and Markets Authority (ESMA) risk scale. This scale is widely used throughout the investment industry and uses volatility to classify different investments along a 7 point risk scale. Volatility is a measure of how much an investment's value goes up or down over a given time.

Click here for more information on the ESMA risk scale.

3. Investment Suitability: Investment Type

Risk Rating: out of 7 - Investment

A diversified investment will have a mix of defensive and growth assets.

This mix will determine how risky the fund is and what would be a reasonable long term growth potential. The more growth assets held the riskier the investment but the higher the long term growth potential.

A fund with a risk rating of is likely to have . Based on Society of Actuaries in Ireland guidelines, % p.a. would be a reasonable long term expected return for such an investment.

Long Term Expected Return

This is an annual figure and does not take account of charges or inflation

3. Investment Suitability: Short Term Volatility

Risk Rating:

Long Term Expectation

Range of probable outcomes in any 12 month period*

Although it is reasonable to have a long term expected return, the returns in any one year are going to be higher or lower than this.

Depending on the expected volatility of the investment, it is possible to estimate a range of annual outcomes which would be deemed 'normal' for that type of investment.

The graphic opposite illustrates the likely spread of annual returns. You will see that most of the time returns will be around the long term expected return. However, more extreme outcomes are probable.

*This assumes 95% probability, more extreme outcomes are possible.

3. Investment Suitability: Long Term Volatility

Risk Rating:

Long Term Expectation

Range of possible outcomes after years investment term*

Term

5 years

Over time your investment will have both good and bad years.

The longer your investment period the predicted range of annual returns will get closer to the long term expectation.

Adjust the term on the graph to see the effect of this.

However, you should also note the impact of compounding. A small annual profit or loss, over a long period of time, can have quite an impact on the value of your investment.

*This assumes 95% probability, more extreme outcomes are possible.

4. Validation

Risk Rating:

You have just seen how an investment with a risk rating of might behave.

Before we show you some funds which might be suitable for you, can you confirm that having seen the possible risk and return outputs of an investment rated out of 7, you are comfortable that such an investment might meet your needs.

Agree Risk Level & Continue to View Fund Range

Alternatively you can look at a risk option.

View Higher Risk Option

View Lower Risk Option

5. Fund Options

The following is a list of Aviva Funds with a risk rating of .
You should discuss the suitability of these, or other funds, with your Financial Broker.
These are our Series 1 funds which are suitable for the following products: Personal Pensions, Executive Pensions, Personal Retirement Bonds, Approved (Minimum) Retirement Funds, Investment Bonds and Savings Plan. My Future funds are only available for investment as part of an Executive Pension Plan, Personal Pension and Retirement Bond and if selected 100% of your premium must be invested in My Future.
For more information on our complete range of funds visit our Fund Support.

Please tick the boxes below to see full explanation here >

Customise Report Screen

6. Customise Report

Complete those fields below you wish to include in your report. Logos can be png, jpg or gif format and will be scaled where more than 200 pixels high.

1. Company Logo
2. Prepared by
3. Company name
4. Client name
5. Date
6. Free text
7. Signature labels

7. Include Additional Information

Check the boxes for the elements below you wish to include

Reports

Factsheets