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Understanding Your Risk Profile
Financial planning is, at heart, planning to handle financial risk. Before you or your Certified Financial Planner (CFP) begins on the task of creating a Financial Plan for you, your risk profile needs to be assessed and matched with your aspirations. For e.g, how calm do you remain watching the stock market take a nosedive when you have substantial investments in shares? will it deeply affect your peace of mind? Financial Planning is done to ensure peace of mind, and hence it is very important to understand your personality to ensure that you get what you want.

Take this simple test to understand your risk profile. A recommendation though, would be to have it administered to you by a Certified Financial Planner (CFP)

Fill in your details below and click on the "Tell me my Score" button to guage your risk profile :-

Name :
Organisation :
Mobile :
Email id :
 
How 'risk friendly' are you? Find out here
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:
 



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


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



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



   
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?
 




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



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



   
9. Which of these scenarios best describes your "Risk Range"? What level of losses and profits would you be comfortable with?
   
 
Select Choice Worst year Average Year Best Year





Investment A 1 % 9 % 15 %
Investment B -5 % 10 % 20 %
Investment C -10 % 12 % 25 %
Investment D -14 % 13 % 30 %
Investment E -18% 14% 35%
Investment F -21% 15% 40%
   
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