Investing isn’t one-size-fits-all. Some people want safety, others want steady income, and some want to protect their wealth against currency swings. That’s why risk profiling is so important—it helps match your personality and goals with the right investment fund.
Every investor is unique. By understanding your risk tolerance, goals, and time horizon, CP Mutual Funds help you choose the right path—whether it’s safety, steady income, or currency protection.
Let’s bring this to life with a story of three friends—Amaka, Tunde, and Bayo—who all received a bonus at work and decided to invest with CP Mutual Funds.
Amaka: The Careful Planner (CP Money Market Fund)
Amaka is a schoolteacher. She worries about emergencies and wants her money safe and accessible at all times.
After completing her risk profile assessment, her adviser recommended the CP Money Market Fund. This gave her:
- Steady returns
- Capital preservation
- Quick access to her cash
Amaka discovered she was a conservative investor—more concerned about safety than chasing big returns.
Tunde: The Income Builder (CP Fixed Income Fund)
Tunde is in his 40s and looking for predictable cash flow to support his family. He’s willing to take on slightly more risk than Amaka but still values stability.
His adviser guided him to the CP Fixed Income Fund, which invests in a basket of government and corporate bonds. This gave him:
- Regular income
- Lower volatility than equities
- Moderate growth potential
Tunde’s risk profile revealed he was conservative to moderate, seeking stability but open to some measured risk.
Bayo: The Dollar Worrier (CP Dollar Fund)
Bayo works in oil and gas and is constantly concerned about the naira losing value. His biggest priority is to protect his wealth in a stable currency.
His risk profile showed he was moderate and currency focused. The CP Dollar Fund suited him perfectly:
- Exposure to U.S. dollar-denominated assets
- Hedge against naira depreciation
- Moderate returns in hard currency
The Lesson: Why Risk Profiling Comes First
Without risk profiling, Amaka might have panicked if placed in riskier bonds. Tunde could have been too cautious and missed income opportunities. Bayo might have lost value by ignoring currency risk.
Risk profiling acts like a compass. It doesn’t remove market fluctuations, but it ensures every investor is matched to the right CP Mutual Fund:
- Conservative Investors → CP Money Market Fund
- Conservative to Moderate Investors → CP Fixed Income Fund
- Moderate, Currency-Focused Investors → CP Dollar Fund
👉 Ready to find your investor personality? Start with a risk profile assessment today.