Risk Profiling Questionnaire
For executing Risk profiling of clients we are managing a comprehensive risk profiling form. As per respected SEBI team feedback we have done amendments in the process. Please refer below updated Risk Profiling Process. We obtain from the client, such information as is necessary for the purpose of giving investment advice, including the following:-
Age of the client:
- In our risk profiling we gather the information about age group of the client.
Investment objectives including time for which they wish to stay invested:
- Whether they want to invest in short time horizon as it’s involve risk, or wants to go for long term investment.
The purposes of the investment:
- Whether they want to invest for their capital appreciation or for saving for a long term goal or for short term speculation and what are his or her priorities.
Income details of client:
- We obtain information about what is the source of Income of the client and what is his/her annual income, Expenses of the client and Fund that can be saved for future investment.
- We obtain information about their existing investments/ assets, whether it requires diversifying their investments.
Risk appetite/ tolerance:
- On the basis of discussion with client & analysis of their current assets and their current liabilities we decided the Risk appetite of the client and tolerance level of the client.
- We obtain the necessary information about their current liabilities and borrowing from Banks or from financial institutions or from any other means of finance to access their tolerance level.
Process for assessing the risk a client is willing and able to take:
- We have a process for assessing the risk a client is willing and able to take, our team work on data provided by clients and assess whether the client is able to take high risk, moderate risk or low risk. As per the risk bearing capacity of client services which suits to their investment/trading needs are offered.
- Risk profile of the client is communicated to the client after risk assessment is done.
- Information provided by clients and their risk assessment is updated periodically.
- We have a comprehensive Risk Tolerance Questionnaire form which has to be filled before doing any investment so that we can access the client risk tolerance category. For risk profiling we have made a separate team where they ask the questions from the clients and note down the same for risk analyze & suitability assessment to identify the suitable services for the clients.
- Risk profiling of the client is done twice, once before offering a free trial and then again at the time of service subscription. Risk profile form used by us contains questions which are helpful to know the client’s capacity for absorbing loss & identifying whether clients is unwilling or unable to accept the risk of loss of capital and attribution of appropriate weight to the questions.
- Risk Profile of the client is communicated to all clients along with the questions and answers selected by the client, at the end of report a statement about the risk appetite of the client is always mentioned. Also, in the Process flow of Investment Advisory services submitted at the time of inspection we have highlighted that “As soon as client subscribes for the services his risk profiling is cross validated manually by KYC executive by calling the client. As per details shared by client his risk profiling is carried out & mailed to client.
PFB Risk Profiling Questionnaire-
Tolerance for risk is a key consideration in determining your probable level of comfort with varying investing choices. Also, risk categorization helps to do the suitability assessment & suitable service selection for client.
The Maximum weight allotted to all the questions would sum up to 1425.
Any client with risk appetite score below 570 is classified as Low Risk Appetite Client. Any client with risk appetite score between 570-930 is classified as Medium Risk Appetite client and will be offered Medium Risk products/services, while a client with Risk Appetite score above 930 can select any product/service since the Risk Appetite is high. Investments/trading in Intraday and short term carry risk and we specialize only in intraday and short term advisory services so we do not offer any product of low risk.