Risk profiling is for the user to take a short, mandatory assessment upon registration or when starting a new investment plan.
The tool uses a set of questions to analyze several factors before investment:
- Age, occupation, and stability of income.
- Purpose of investment (e.g., retirement, buying a house) and time horizon (short vs. long-term).
- Risk Appetite for emotional tolerance to market fluctuations (e.g., “how much loss can you handle before panicking?”).
Risk profiling is conducted to determine the extent to which an investor can tolerate the risks associated with making investments. Based on this score, an advisor suggests suitable schemes and categories. For this:
- You have to visit www.mutualglobe.com. Following page displayed click on the “Financial Planning” button given on right side of the screen.
- Then the following page will appear click on “Investor Login”:
- Login to site with Username & password and click on “Log in” button:
- After entering your Login credentials, you will reach to your Dashboard:
5. Now, you will the different menu button are given on the left side of the page, the second last option is “Risk Profiling”. Click on the button the following page will appear:
6. Set of question will display on the screen, you have to select the most relevant option from the given options:
7. After completing your questionnaire, click on “Submit button”:
8. Following page will appear with your risk appetite meter:
9) Risk Profile Categorization: The user is generally categorized into one of five categories:
- Conservative: Prioritizes capital protection, low risk.
- Moderately Conservative: Prefers stability with limited growth.
- Moderate: Balances risk and return.
- Moderately Aggressive: Seeks higher growth with calculated risk.
- Aggressive: High-risk tolerance for maximum growth