Risk Assessment Tool
Answer ten quick questions to discover your risk score, investor type and suggested asset allocation across equity, debt and gold, plus the types of mutual funds that suit you.
1.What is your age group?
2.How long can you stay invested without needing this money?
3.What is your main goal for this investment?
4.How stable is your monthly income?
5.If your investment fell 20% in a few months, you would:
6.How much investing experience do you have?
7.What share of your monthly income can you invest?
8.Do you have an emergency fund for unexpected expenses?
9.How many people depend on your income?
10.How much of your monthly income goes to loan EMIs?
Answer all 10 questions to see your risk profile and suggested asset allocation.
How to use your risk profile
Your risk profile is the starting point of every sound investment plan. Once you know it, use the suggested asset allocation as a blueprint: decide how much of your money belongs in equity, debt and gold before you pick a single fund.
When choosing schemes, match them to your profile using the SEBI Riskometer printed on every mutual fund. A Conservative investor should lean towards funds marked Low to Moderate, while an Aggressive investor can consider funds marked High or Very High. This keeps the funds you own consistent with the risk you set out to take.
Markets move, so your actual allocation will drift over time. Review it once a year and rebalance back towards your target. Revisit this assessment every two to three years, or sooner if your income, age or responsibilities change meaningfully.
What does the risk assessment tool do?
This is a short questionnaire that estimates your investor risk profile - Conservative, Moderate, Aggressive, or somewhere in between. Based on your answers about age, income stability, time horizon, financial goals and reaction to market falls, it suggests a broad asset allocation and the kind of mutual funds that fit. Risk profile is not the same as risk tolerance alone. The tool considers both capacity (what your situation can absorb) and tolerance (what your temperament can hold through). A plan that respects both is the only kind you'll actually stay invested in.
How to use the Risk Assessment Tool
- Answer 10 honest questions. Be truthful - the goal is to find a plan you will actually stick with.
- Read your risk profile. Conservative, Moderately Conservative, Moderate, Moderately Aggressive or Aggressive.
- Review the suggested asset allocation. Suggested split across equity, debt and other categories.
- Plan your fund mix. Choose funds that match the allocation suggested by your profile.
- Reassess every 2-3 years. Risk profile shifts with life stage, income and responsibilities.
Why a risk profile matters
- Picks the right fund family. Equity, debt, hybrid - your profile maps to the right category.
- Stops panic selling. A plan calibrated to your tolerance is easier to hold through a fall.
- Catches over-conservatism. Many cautious investors are quietly losing real value to inflation.
- Catches over-aggression. A 100% small-cap portfolio is hard to sit through for most people.
- Foundation of a goal-based plan. Risk and goal together decide the right vehicle.