ZOPA has created a quiz to help people identify their risk profile and has compiled a “Risk and Safety Index” for the UK.
The peer-to-peer consumer lender’s quiz asks a variety of questions including how tidy your home is, what type of film you prefer, and whether or not you wear a helmet when you cycle. At the end of the quiz, you receive a risk rating of between -45 and +45, which will tell you if you are a “risky” investor, or “risk averse”.
With the help of a behavioural scientist from Warwick Business School, Zopa was able to analyse the data to rate the towns and cities across the UK in terms of the risk attitudes of their respondents.
The town with the riskiest investment outlook was Burnham, while the most risk averse town was Exeter. The town which appeared right in the middle of the risk spectrum was Watford, Hertfordshire.
“Some people like to live life right on the edge, while others prefer to be a bit more cautious,” said a Zopa spokesperson.
“At Zopa, we love the place slap-bang in the middle. Finding that perfect balance between risky and safe just feels right to us. So for our latest research, we wanted to find the town in the UK where people live in the middle, getting that healthy balance of risk and safety that we can’t get enough of.”
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Zopa added that its Innovative Finance ISA (IFISA) represents the mid-way point between low-risk, low-yielding cash ISAs and volatile, high-return stocks and shares ISAs.
The London-headquartered firm offers two IFISA products: The ISA-Core targets returns of 4.5 per cent, while the ISA-Plus targets 5.2 per cent per annum.