Risk Assessment

Let's assess your Risk Appetite

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

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:

5. From the following 5 possible investment scenarios, 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, maximizing 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?

Investment A (Worst Year: 1%, Best Year: 15%)

Investment B (Worst Year: -5%, Best Year: 20%)

Investment C (Worst Year: -10%, Best Year: 25%)

Investment D (Worst Year: -14%, Best Year: 30%)

Investment E (Worst Year: -18%, Best Year: 35%)

Investment F (Worst Year: -21%, Best Year: 40%)

Your Appetite is

15%

Growth

Conservative

85%

Defensive

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