Description of risk tolerance assessment

1. What is the risk tolerance assessment?

Risk tolerance assessment is a session before investors buy relevant investment products, aiming to understand the risk tolerance of investors and other conditions, so as to assist investors to choose appropriate financial products or financial services and make the investment products or services provided match the risk tolerance level of investors.

2. What determines the outcome of the assessment?

The outcome of your risk tolerance assessment is determined by the combined score of the two parts: investment ability and investment willingness. According to the assessment outcome of the risk-bearing capacity of investors, Futu will divide the risk-bearing capacity of investors from low to high into five types: conservative, stable, balanced, growth, and radical.

3. What do different types represent respectively?

Conservative type: want absolute safety of capital, and only accept small fluctuations
Stable type: want to get a more stable return with less principal risk
Balanced type: bear a certain range of fluctuations, and pursue asset appreciation and current income
Growth type: bear large fluctuations, and pursue higher income and long-term appreciation of assets
Radical type: be willing to accept great risks and fluctuations, pursue great returns