Investments need to be carefully planned and designed as per your risk taking capacities. Risk profiling, put simply, calculates the amount of risk you are ready to handle in case of a downturn. This will affect the returns and hence the allocation of assets in your investment portfolio.
There are a few factors taken into account to determine your risk profile. Answer the questions given below with the option that is closest to your requirements.
Disclaimer: The asset allocation of the model portfolios is done on the basis of our understanding of the divergent risk profiles and return expectations. Since risk assessment remain a subjective matter, the asset allocation under different risk classifications may vary industry wide. Returns on any asset category are not guaranteed. The equity asset class (including derivatives) is a high risk – high return asset category. Investments in this category are subject to market volatility and the investor could see sharp losses if he/she does not have a long term approach. In some cases debt exposure also carry volatility and other market related risks. Proper asset allocation is therefore recommended to all investors. In equity category, which itself is a high risk asset category, the risk is the highest in products based on market information/technical and comparatively lower in products based on fundamental recommendations.
