Risk Profile Questionnaire for Portfolio Building

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Risk Profile Questionnaire for Portfolio Building

Risk Profile
1If the performance of an investment you have recently made is below your expectations, how would you feel?

a) Very upset
b) Somewhat upset, but hope that it will improve in the future
c) Uneasy but willing to take it in my stride
d) Not upset because I know that all investments carry risk

2What do you normally associate the word 'Risk' with?

a) Danger
b) Uncertainty
c) Opportunity
d) Thrill

3If you had to choose between being a salaried employee and running your own business, which one would you prefer?

a) Being a salaried employee
b) Doing a salaried job and may be run a part-time business
c) Running a partnership business
d) Running my own business

4When you invest your money, what thought comes to your mind first?

a) I should not lose my money
b) This should not turn out to be a bad investment
c) This should turn out to be a good investment
d) I know this is a good decision

5After you have made an investment, how do you usually feel?

a) Very worried
b) Somewhat worried
c) Somewhat satisfied
d) Very satisfied

6If you had the choice between a fixed salary and a partly variable one, depending on your performance and the profits of your company, which one would you prefer?

a) I would prefer a fixed salary, even if it is small
b) I would prefer most of my salary to be fixed, with only a small variable part
c) I would prefer half my salary to be fixed and the other half to be variable
d) I would prefer most of my earnings to be performance-linked

7If you had to make an investment decision without consulting or discussing it with anybody, how would you feel?

a) Very unsure
b) Not very confident
c) Some what confident
d) Very confident

8Consider this scenario. You had invested in a company, but its performance was so bad post your investment, that you sold off your investments at a loss. Then you hear

a) Definitely not
b) May be, but am not very sure
c) Perhaps I will
d) Definitely yes

9Experts tell you that investments are subject to risk and you have to be prepared for losses as well as gains. What is the level of loss in your investment that you are willing

a) I would hate to see any kind of loss in my investments
b) I will be willing to take up to a 20% loss
c) I can perhaps bear a loss of up to 40%
d) I am willing to take any kind of loss

10If you looked at the portfolio of the investments that you have already made, how would you characterise them?

a) Only assured return investments
b) Limited investment in risky products
c) Divided between risky and safe products
d) Mostly risky investments

11If your investment advisor told you that you could enjoy better returns if you were willing to take the risk, to what extent would you be willing to expose your

a) None at all
b) About 20%
c) About 40%
d) More than 50%

12Interest rates can go up or down. If you had to take a loan and had the choice between a fixed rate and a variable one, which one would you prefer?

a) I will always choose a fixed rate
b) I will choose a combination of 70% fixed and 30% variable
c) I will choose a combination of 30% fixed and 70% variable
d) I will choose 100% variable


Your Risk Profile score is : 120

Demographic Profile
For every attribute that applies to you in Column A, you would need to enter "1" in the Score A column alongside and for every attribute
AttributeAScore ABScore B
Age<50 years>50 years
Income> Rs. 5 Lakhs p.a.< Rs. 5 Lakhs p.a.
OccupationSelf EmployedSalaried
Educational Background> Graduation< Graduation
Experience in investing> 3 years< 3 years
Investing Horizon< 3 years> 3 years
Add up Score A. This is your Demographic Profile Score.

Total Score is : 5

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