Choosing the Right Fund for you
The Cook Islands National Superannuation Fund provides you with three different investment options (or Funds). They all invest in the same products – the main difference between each is the mix of growth and income assets. The Fund you choose is important because it should reflect the amount of risk you are comfortable with.
To help you choose the right Fund, we’ve put together this simple questionnaire which will only take you a few minutes to complete. The results are designed as a guide only and don’t take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances.
|How Long do you have until you turn 60?||Write down the answer that best matches you and add up the numbers to get your score|
|Less than 5 Years||10|
|5 – 10 years||20|
|11 – 25 years||30|
|More than 25 years||40|
|How much do you know about investing?||Write down the answer that best matches you and add up the numbers to get your score|
|I only know about bank accounts and term deposits||5|
|I know a little bit about investments like bonds and shares||10|
|I know that it is important to spread my savings across different types of savings and investments including bank accounts, bonds, and shares||15|
|I know the potential risk and return rewards for different types of investments||20|
|If your retirement fund balance went down over 12 months from $10,000 to $9,000. What would you do?||Write down the answer that best matches you and add up the numbers to get your score|
|Transfer the entire investment to a more secure option||5|
|Transfer some (say half) of the investment to a more secure option||10|
|Invest more to take advantage of lower prices||20|
|What is your general view about investment risk?||Write down the answer that best matches you and add up the numbers to get your score|
|I am less concerned with how much my savings grow, I just don’t want to lose the money I’ve put in.||5|
|I accept that my account may drop in value on the odd occasion but would expect it to grow slowly and steadily.||10|
|I am more concerned with growing my savings and I can accept monthly gains and losses in my account value but I would feel uneasy if I didn’t recover any significant losses within a couple of years.||15|
|I want to maximise my savings. I accept that my account may have significant losses that may take years to recover.||20|
|If you had no debt and do not need a new truck, what would you do with $50,000 that had to be invested?||Write down the answer that best matches you and add up the numbers to get your score|
|Put it all in the bank or on term deposit||5|
|Put it mostly in the secure investments like term deposits and bonds and a small amount in growth investments like shares||10|
|Put most in the share market and the rest in a more secure investment such as term deposit||15|
|Put it all in shares||20|
|Add up the numbers to get your score|
Match your risk profile with an investment fund
0 – 50: You are a conservative investor
If your score was between 0 – 50 you sit at the bottom of the investor risk scale. You are cautious when it comes to investing.
You will accept a small amount of investment risk to achieve modest returns over the short to medium term. You want to protect the value of your retirement savings.
You may wish to consider the CINSF Conservative Fund.
51 – 80: You are a balanced investor
If your score was between 51 – 80, you sit just above the middle of the investor risk scale. You like some risk when it comes to investing.
You will accept a medium to high level of risk to grow your retirement savings over the medium to long term. You have a 7+ year time horizon.
You may wish to consider the CINSF Balanced Fund.
81+: You are a growth investor
If your score was 81 or over then you are at the top of the investor risk scale. When it comes to investing you like to take risks.
You will accept a higher level of risk over the long term to achieve the potential of higher investment returns. Your primary aim is to grow your retirement savings over 10+ years. You know and accept that you are likely to experience big changes in the returns on your investment.
You may wish to consider the CINSF Growth Fund.
Remember that your attitude to risk may change over time and that past performance is not a reliable indicator of future performance.
We recommend that you revisit your risk profile every 5 years or whenever you have a significant life event – e.g.: serious illness, change of job or any substantial change in your financial circumstances.