We ask this questing because we need to establish your comfort level in the investment market. Some investors are more comfortable with certain types of investing such as term deposits or debentures whereas others feel more confident in the property market.
Debentures are certificates or bonds which acknowledge a depth on which fixed interest is paid.
This question gives us a better understanding of your risk level and what portion of your investment allocated savings you would like to protect and what portion you are willing to accept high risk on. Some investors prefer high risk for high return, however others prefer the security that lower risk investments give. To answer this question think about how much of your investment budget you are willing to risk.
High risk investments include those that may fluctuate in value, even incurring short-term losses, but can return higher gains over the longer term.
This question is asked so that we can assess what sort of investments suit you best. Some investors like to have access to their funds at short notice whereas others prefer the higher returns that can be gained by leaving the money tied up for a period of time. To answer this question you need to think about how much you are putting away and how soon you will be needing this money or any income from it.
This question is asked so that we can determine the type of portfolio that would suit you best. If you require income from interest then you will need a very different investment strategy than if you are looking mostly for capital growth.