<\/span><\/h4>\nRefer to the feedback for Question 3 for the explanation.\u00a0<\/i><\/p>\n<\/div>\n<\/div>\n\n
<\/span>Q3. How do you decide when to change your investment allocation?<\/span><\/h3>\n\nA. I’m all in on one, the only change I need is for parking.<\/li>\n B. I change when I lose money.<\/li>\n C. I change when my risk profile changes and after adequate research.<\/li>\n<\/ul>\n\n
Score: <\/span><\/h4>\nThinking that the less diversified your portfolio is, the lower your risk will be is not entirely true. More often than not, it’s a lot riskier. As previously mentioned, different investments carry different levels of risk and thus varying levels of return.<\/p>\n
With a diversified portfolio, the loss from one investment (say stock) can be mitigated by the gains of another investment (say bonds). You should always diversify by how you choose to diversify however should be based on your risk profile:<\/p>\n
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<\/span>Q4. Do you know how much your investments cost you?<\/span><\/h3>\n\nA. It’s totally free!<\/li>\n B. I have a rough idea but I don\u2019t know the exact numbers.<\/li>\n C. I know how much it costs.<\/li>\n<\/ul>\n\n
Score: <\/span><\/h4>\nInvesting often requires the expertise, knowledge, and experience of professionals that will likely charge you a fee. However, hidden or excessive fees can offset any potential returns from your investments, thus it is important to know how much each investment costs by identifying what portion goes to your advisors and if there are any penalties for switching investments.<\/p>\n
A good general rule of thumb to follow is to compare prices before making a commitment.<\/p>\n<\/div>\n<\/div>\n
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<\/span>Q5. How do you keep track of the progress of your investments?<\/span><\/h3>\n\nA. I don\u2019t have time to track, I just keep going!<\/li>\n B. I track the progress of my investments with a yearly spreadsheet.<\/li>\n C. I opt for regular updates (if possible) and keep track my investments on a monthly or quarterly basis.<\/li>\n<\/ul>\n\n
Score: <\/span><\/h4>\nThe old adage that knowledge is power rings true when it comes to investing. If you don\u2019t regularly keep track of how your investments are doing, you will most likely be unable to make timely decisions on your investments. Failing to do so can at best prevent you from achieving your financial goals or cause you to lose money.<\/p>\n<\/div>\n<\/div>\n
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<\/span>Your total score is: <\/span><\/span><\/h2>\nScore of 8 or less. \nInvestor Level: Rookie<\/strong> \nYou haven’t done you research and your lack of understanding puts you at high risk of being a victim of fraud or theft. Investment(s) are unlikely to meet financial objectives.<\/p>\nScore of 9 to 12. \nInvestor Level: Young Grasshopper<\/strong> \nYou understand the fundamentals of investments but still have a moderate risk of being a victim of fraud or theft. Your investments might meet financial objectives but you may not be maximising their full potential.<\/p>\nScore of 13 or higher. \nInvestor Level: Financial Guru<\/strong> \nYou have a thorough understanding and you’ve spent hours of research on investing. This puts you at low risk of being a victim of fraud or theft. Your investments are likely to meet financial objectives.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"Think you know about investment? Find out for sure with this quiz!<\/p>\n","protected":false},"author":9,"featured_media":9043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9042","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment"],"acf":[],"yoast_head":"\n
Are You An Investment Guru? [Quiz] - iMoney<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n