Mutual Fund Risk Calculator
When one thinks of investment, it is important for an investor to understand his investment goals, time horizon and risk profile. But what exactly this Risk Profile is?
Risk profile is a quantitative and qualitative analysis of the types of threats to which a person or a company is exposed too. It’s the evaluation of investors willingness to take risks. It is important for an investor to have a view of his risk profile as it helps one decide how their investment asset allocation portfolio must look like.
It will help an investor understand how much risk they can actually take versus how much they should be taking to achieve their financial goals. So, one must eventually incur various risk management techniques to beat the odds. One of which is using a risk profile calculator to have a clear view of how one can invest with eliminating the risk to get better returns.
What all things are analysed in a risk profile assessment?
- Risk capacity – which analyses the financial risk one can bear comfortably based on his life situations.
- Risk requirement – what are your financial goals and to achieve them how much risk you can take.
- Risk tolerance – how can you handle the risks in your mind owing to the market instability.
- Attitude – understanding the risk associated and how it applies to your financial life.
How risk profiling will help you?
- Helps you take the right risk as per your capacity and requirement.
- Helps grab the right opportunities to choose the right mix of assets to benefit the most in sync with your risk profile.
- You know about your condition, so you are able to react in a better way to unknown surprises.
Once you know your risk profile you can easily determine what kind of investor you are, low-risk, medium-risk and high-risk taker, you will know what kind of returns you can expect from your investment portfolio and it will also help you in deciding you to have the prefect portfolio for yourself. Risk profiling also gives an exact opportunity for financial advisors to get a glimpse of their client’s aspirations.
And to ease all this process we have come up with a Risk Profile calculator.
Risk Profile Calculator
This calculator will help you analyse your position of risk you can take based on inputs from you related to different parameters discussed. It will help you take better decisions in the near future so that you successfully achieve your financial dreams.
How to use this risk profile calculator by Fintra –
It is very simple and easy to use. Just a few choices are to be made and in a flicker of time you have your investment profile.
Enter the following -
- Firstly, Enter your age group
- The annual income of yourself
- Tell us how many dependants you have (parents, children, wife)
- What percent goes to car/home loans or EMI’s
- What are your current savings
- How much you can invest?
- How important it Is to get better returns and protect against loss?
- What’s your investment period?
And there you go the following screen gives you your risk profile suggesting you how much you should be investing in what.
So, its important for everyone specially beginner investors to analyse their risk profile using a risk profile calculator. This will help you earn better returns on your investment and have a risk-free journey ahead.
Download the app by clicking on the link below and use the Risk Profile Calculator now.
