A key to choosing an investment strategy is deciding the level of return you want, relative to investment risk, taking into account your own financial and personal situation. You can use HESTA's Investment Risk Profiler Calculator to help determine what sort of investment strategy you may prefer or compare your options using the investment comparator.

Simple steps to consider when choosing an investment strategy:

Each person has their own comfort level in relation to risk and should choose their strategy accordingly. This is one of a number of factors that you should take into account when deciding on an investment strategy, along with your specific position and needs.

Step 1: Fill in the questionnaire to learn about your indicated risk tolerance level

The key to choosing an investment strategy is deciding the level of return you want relative to how comfortable you are with investment risk. 'Risk' simply means the chance that the actual investment return will be different from the expected investment return. This can be a positive or negative outcome.

Step 2: View your score and check it against the risk profile descriptions

This may help you to clarify whether you are currently likely to be more comfortable with low, moderate or high risk investment strategies.

Lower risk options will generally be expected to provide relatively consistent but lower returns over time. Pursuing high long-term returns may require investment in more volatile options at a greater risk of negative returns in some years.

What if you need financial advice?

HESTA is only able to provide general advice about HESTA and its features. However, you are encouraged to contact a person or organisation licensed to provide personal advice as an Australian Financial Services Licensee or representative if you want advice that takes into account your specific financial needs and objectives. Your employer must not give advice about HESTA or recommend any other financial product unless licensed to do so. HESTA members can access commission-free financial planning advice through Industry Fund Financial Planning (IFFP).

Continue to the Investment Risk Profiler here!