Risk Profile and Suitability

We Don't Provide Any Advice Without Risk Profiling

It Is One Time Requirement For Every New Trader

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

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

INFORMATION

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.

RISK ASSESSMENT

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.

RISK PROFILING TOOLS

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.

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