What is Risk Profile

The investment advice and asset allocation for an investor would have to be customized to the ability and willingness of the investor to assume risk. This is determined by a risk profiling exercise, which seeks to assess the attitude towards risk and possible loss in the portfolio and the willingness to pursue an investment plan, after understanding the underlying risks.

We will update the Risk profile for every client Annually 

As SEBI registered investment adviser we obtain such information from clients as it is necessary for the purpose of giving investment advice. This information includes age, investment objective, investment horizon, income details, existing assets and liabilities and risk appetite.

We have a process for assessing the risk that a client is willing and able to take. And we inform clients about their Risk profile after risk assessment. 1. Assessing a client’s capacity towards Risk, 2. Identifying client attitude towards Risk. 3. Appropriately interpreting client responses to questions and not attributing inappropriate weight to certain answers.

We use questionnaires to generate risk appetite scores of clients. We ensure that questionnaires is fit for the purpose and any limitations have been identified and mitigated. Our questionnaire is neither too complex nor misleading for the client to understand and express a fair opinion.

There are 3 Types of Investors

Some traders who have more liablity or do not have sufficient income or have low financial status , they should avoid trading in Derivaties and you should remember that we will analyse your RIsk Profile and then will provide you the service either it is a trial or the paid subscription , we do not give any service without understanding your risk taking capacitiy, We will analyse it first and then will giving Investment or trading advice as per your risk profile , suppose if your risk profile is low and still you wanted to get high risk packages then we will not allow that .

Conservative

Do not like to take risk with their investments. Typically new to risky instruments. Prefer to keep their money in the bank or in safe income yielding instruments. May be willing to invest a small portion in risky assets if it is likely to be better for the longer term.

Moderate Investors

May have some experience of investment, including investing in risky assets such as equities. Understand that they have to take investment risk in order to meet their long-term goals. Are likely to be willing to take risk with a part of their available assets.

Aggressive Investors

Are experienced investors, who have used a range of investment products in the past, and who may take an active approach to managing their investments? Willing to take on investment risk and understand that this is crucial to generating long term return. Willing to take risk with a significant portion of their assets.

Suitability

As SEBI registered investment adviser we ensure the following

  • Investment advice and related investments are appropriate to the client’s risk profile.
  • We have a documented process for selecting products based on client’s investment objectives and financial situation.
  • We always understand the nature and risks of products or assets selected for clients.
  • We always have a reasonable basis for believing that a recommendation or transaction entered into:
    • a. meets the client’s investment objectives.
    • b. is such that the client is able to bear any related investment risks consistent with its investment objectives and risk tolerance.
    • c. is such that the client has the necessary experience and knowledge to understand the risks involved in the transaction.

When advice is given to a client to purchase a complex financial product, such a recommendation or advice must be based upon a reasonable assessment that the structure and risk-reward profile of the financial product is consistent with clients experience, knowledge, investment objectives, risk appetite, and risk capacity

Scroll to Top