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EFPG

RISK PROFILE: BALANCED

Your answers suggest that your tolerance to investment risk as being BALANCED.

This means that in order to achieve better returns than from cash deposits you are willing to accept investment risk. You take the view that over the time you wish to invest the potential for superior longer term performance from equities relative to other investments justifies their inherent short-term volatility or risk. You are prepared to accept an investment portfolio weighted more heavily towards equity investment but wish to combine this with a significant exposure to lower risk, less volatile assets such as cash and fixed interest securities in order to provide diversification and risk control.

A typical investment portfolio for someone invested with a balanced attitude to investment risk might be 40% invested in cash deposits or fixed interest investments, and 60% invested in shares or similar investments.

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