RISK PROFILE ASSESSMENT
An Investment Adviser is mandated to assess the risk bearing capacity of its client before giving any advice with respect to securities market. Regulations 16 & 17 of the Securities and Exchange Board of India (Investment Advisers) Regulations 2013 (“IA Regulations”) provides for Risk Profiling and Suitability Assessment for the client. Reg. 16(b) of the IA Regulations provide for assessing the client’s Ability and Willingness to take risk.
The risk profiling questionnaire is divided in to two parts: Part A of the questionnaire consist of 18 questions, which will help in determining as to how much risk is the client able to tolerate. Part B of the questionnaire consist of 12 questions, which will help in determining as to how much risk is the client willing to take. Each question have absolute and mutually exclusive responses carrying appropriate weights. The summation of all the weights associated with to selected responses will determine the Risk Score of the client, thereby classifying the client as High Risk Appetite, Moderate Risk Appetite or Low Risk Appetite, based on corresponding scores obtained by the client.
Following is the Risk profile assessment in compliance with abovementioned regulation
RISK PROFILING QUESTIONNAIRE
PART A= ASSESSMENT OF ABILITY OF CLIENT
5. Your current annual take-home income is?
8.Current Investment Amount?