Risk Profiling

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Risk Profiler

The risk profiling questionnaire is meant to measure the risk tolerance as well as time horizon in investing. The questionnaire is designed to show which type of investment approach may suit you best. Each answer would be given a point. The total score would suggest the appropriate risk profile for you.

Our advice: There are not any right or wrong answers, please follow your instincts and answer the questions. Please answer the following questions by selecting only one response to each question.

1. What is your Investment horizon? How long can you keep your money invested in the market before needing access to it?

Up to two years

Two and three years

Three and five years

Five years and Ten years

Ten years and more

2. The age group you belong to:

51 years & above

36‐50 years

25‐35 years

Less than 25 years

3. How well do you understand investing in the markets?

I am a novice. I don’t understand the markets at all.

I have basic understanding of investing. I understand the risks and basic investment concepts like diversification.

I have an amateur interest in investing. I have invested earlier on my own. I understand how markets fluctuate and the pros and cons of different investment classes.

I am an experienced investor. I have invested in different markets and understand different investment strategies. I have my own investment philosophy.

4. My current and future income sources (example: salary, business income, investment income etc) are:

Very unstable

Unstable

Somewhat stable

Stable

Very Stable

5. From the following 5 possible investment scenario, please select the option which defines your investment objective?

I cannot consider any Loss

I can consider Loss of 4% if the possible Gains are of 10%

I can consider Loss of 8% if the possible Gains are of 22%

I can consider Loss of 14% if the possible Gains are of 30%

I can consider Loss of 25% if the possible Gains are of 50%

6. If your investment outlook is long‐term (more than five years), how long will you hold on to a poorly performing portfolio before cashing in?

Not hold & cash in immediately if there is an erosion of my capital

I’d hold for 3 months

I’d hold for 6 months

I’d hold for one year

I’d hold for up to two years

I’d hold for more than two years.

7. Volatile investments usually provide higher returns and tax efficiency. What is your desired balance?

Preferably guaranteed returns, before tax efficiency

Stable, reliable returns, minimal tax efficiency

Some variability in returns, some tax efficiency

Moderate variability in returns, reasonable tax efficiency.

Unstable, but potentially higher returns, maximising tax efficiency.

8. If a few months after investing, the value of your investments declines by 20%, what would you do?

Cut losses immediately and liquidate all investments. Capital preservation is paramount.

Cut your losses and transfer investments to safer asset classes.

You would be worried, but would give your investments a little more time.

You are ok with volatility and accept decline in portfolio value as a part of investing. You would keep your investments as they are.

You would add to your investments to bring the average buying price lower. You are confident about your investments and are not perturbed by notional losses.

9. Which of these scenarios best describes your “Risk Range”? What level of losses and profits would be comfortable with?

Choice	Worst Year	Best Year
Investment A	1%	15%
Investment B	-5%	20%
Investment C	-10%	25%
Investment D	-14%	30%
Investment E	-18%	35%
Investment F	-21%	40%

Risk Profiler

Results

Registered Address

SEBI Regional Office

SEBI Registration

Number of complaints, 29th Feb 2024