What is Risk Profile ?
Have you asked someone for investment advice? Have you invested into mutual funds, stocks etc after listening to your friends or family members?
Do you think it is the right way to invest? Probably not! What is right for your them may not be right for you!
Before you decide to invest in any funds, it is very important to know your risk profile and then invest accordingly.
There are primarily 5 categories of Risk profile: Low, Moderately Low, Moderate, Moderately High and High. These risk profiles depend upon various factors such as your age group, goal of investing, risk appetite, etc.
Risk Profile |
% Debt Allocation |
% Equity Allocation |
%Returns (Expected) |
|
Low |
90%-100% |
0% -10% |
6%-10% |
|
Moderately Low |
70%-90% |
10%-30% |
10%-12% |
|
Moderate |
50%-70% |
30%-50% |
12%-15% |
|
Moderately High |
30%-50% |
50%-70% |
15%-20% |
|
High |
10%-30% |
70%-90% |
>20% |
This will help you determine the amount you need to invest in debt or equity funds depending upon your risk profile.
You can use our risk profile calculator to determine your risk appetite. The calculator uses both qualitative and quantitative methods to determine your risk taking abilities.
Download the app now by clicking on Google Play link below. Learn everything about mutual funds on Fintra app.
