Your investor profile is the information you give Selma regarding your financial situation, your willingness towards risk and your investment horizon. It helps Selma make sure that your long-term investments fit your life situation in an optimal way.
Why is my investor profile important?
Your investments should fit your life situation. With how much risk should you invest? Does your ability to take risks match with your risk willingness? Your investor profile helps Selma find the perfect mix for you.
Here you can find more information on how Selma puts together your investments.
Can I update my investor profile and what happens next?
Sure, you can update your answers in the investor profile at any time! You should check regularly whether the answers you have given continue to reflect your life situation. Selma might even remind you about it from time to time.
Find out more about updating the investor profile here.
How does Selma create the investor profile?
When you set up your account, Selma will start a chat conversation with you and ask a few simple questions about your financial situation, investment goals and investment horizon. The aim is that Selma attains an accurate overview so that the long-term risk/reward relation of your investment portfolio fits your life situation in an optimal way.
What kind of information does Selma include in the investor profile?
Information about your current situation
Current cash balance
What to enter: Money you hold as cash savings in your bank account.
Why: Do you already have cash savings in your bank account? Remember that over time inflation reduces the purchasing power of your cash. The Selma deposit plan can help you decide how much of your cash you could invest long-term.Desired cash buffer
What to enter: Money you want to hold as a cash reserve in your own bank account.
Why: You should hold a cash buffer as a reserve, just in case something unexpected happens. Selma recommends that the cash buffer is about 3-6 times your average monthly expenses. You should not invest this money but keep it as cash in your bank account.
Planned expenses
What to enter: Your planned larger expenses over the next 1-3 years.
Why: Do you already have certain expenses planned for the near future (1-3 years)? Keep the amount as cash in your bank account as the investment horizon might be too short so you do not have to sell your investments at an unfavorable time.
Monthly savings
What to enter: Amount of money you can put aside monthly from your income.
Why: Can you put money aside on a regular basis? The higher your monthly savings, the better your ability to balance market ups and downs. This strengthens your ability to invest with more risk.
Information about your overall wealth
Real estate ownership
What to enter: Approximate current market value of your real estate (house, apartment).
Why: Real estate is an important investment class long-term. If you already own real estate, Selma will exclude real estate from your investment portfolio to avoid a too high concentration of risk. Remember: This doesn't apply to pillar 3a.Debt (e.g. mortgage)
What to enter: Approximate amount of debt you currently have (mortgage etc).
Why: Selma checks if the debt you hold is sufficiently covered with other assets (mainly through real estate). If you hold too much uncovered debt, it negatively affects your ability to take risks.Other valuable property
What to enter: Approximate value of other items of wealth.Current investments outside Selma
What to enter: Approximate value of investments outside of Selma (including pillar 3a).Risk type of current investments
What to enter: Approximate distribution of your current investments between growth and stability.
Why: The structure of your other investments outside Selma can help determine how much risk your Selma investment account portfolio should include.Investment horizon
What to enter: How long you think your money can remain invested.
Why: In theory, the longer your money can remain invested, the more your portfolio should include investments that offer a higher expected return. With an investment horizon of 10+ years, Selma might reduce or exclude bonds (“loans to companies or countries”) from your investment portfolio.
Questions regarding your risk relationship
How much risk are you willing to take?
What's your main priority when investing?
How does a certain situation make you feel?
What would you do next?
What to enter: How would you react in different scenarios? Try to answer these questions with a long-term perspective in mind and avoid being influenced by short-term events.
Why: The 4 questions regarding your relationship to risk help Selma to define with how much risk you want to invest. This influences if and how much bonds (“loans to companies” or “loans to countries”) should be included in your investments.
What does Selma use the investor profile for?
Selma uses the investor profile as the basis for many core features and services.
Individual investment plan
Selma tailors your investments to fit your life based on your investor profile. For example, she excludes real estate should you already own “physical” real estate like a house, an apartment or a chalet. It is the basis for Selma's decision on how the mix of different investment classes like equity, bonds and real estate in your portfolio looks like. And every time you update the investor profile, Selma checks if your investment plan needs to be updated accordingly.
Suggested pillar 3a strategy
Based on your investor profile, Selma can help you decide which of the available pillar 3a investment strategies fit you best.
Personalised deposit plan
The deposit plan helps you build your wealth over time. Selma suggests how much to invest now, over the next 12 months and regularly. She puts together this detailed advice based on the information you provide regarding your current cash situation and future monthly savings.
Selma AI
Selma AI acts like your personal financial advisor. She can give you tips and advice on everything from your investment strategy to your ability to take risks and how much of your savings you can invest.
This is only possible because you give her the right context – information in your investor profile.
How often should I update my investor profile?
It is important to reflect your financial situation in your investor profile. Selma recommends at least updating your profile quarterly, or whenever it fits your personal "finance routine". This way, Selma can make sure your investments fit your life, and yield the optimal return for you.
Where can I find my investor profile?
You can find and edit your investor profile in the Web app and the Mobile app for iOS and Android.
Web app 💻
Log in via selma.com
Choose “Investor profile” in the navigation bar
Mobile app 📱
Log in with your Selma account
Choose “Profile” from the bottom navigation and then select “Investor profile”
