Financial Planning

M. Sri Phani Bhushan

AP19110010110

Session 6: Ac vity: Risk Profiling

Risk Profile Ques onnaire Form

PERSON-1:

Ques on Ques on Points

number
1 My present age is:
a Under 31 ✓

b 31 to 40
c 41 to 50
d 51 to 60
e 60 and above
15
2 The current value of my savings/capital (including
Investment in property, shares, Mutual Funds,
provident funds, Gold, Bank Deposits etc.) is equal
to:
a Less than half of my current (or last earned) annual
income
b Half of my annual income (salary, pension, interest, ✓
etc.)
c Double my current (or last earned) annual income
d Three mes my current (or last earned) annual
income
e Five mes my annual income
4
3 Within the next few years I expect my income to:
a Decline in real terms
b Stay about the same (gains equal to infla on)
c Increase gradually (slightly faster than infla on) ✓

d Increase drama cally (much faster than infla on)

e Fluctuate and be unpredictable*
6
Financial Planning

4 Regarding dependants (minor or adult) and other

major costs that I need to incur before re rement:
a I will be able to meet all expenses for dependants ✓
(including educa on) and other costs out of my
income
b I will have to withdraw a small por on of my savings
to pay for dependants and other costs
c I will have to withdraw more than half of my savings
to pay for dependants and other costs
d I expect that paying for dependants and other costs
will leave me with very li le savings when I re re
9
5 Based on my lifestyle and medical history, I expect
my risk of serious health problems over the next 10
years to be:
a Above average
b Average
c Low ✓

d Almost nil
5
6 My investment experience is best described as
follows:
a I've never invested in equi es, either directly or
through mutual funds and do not understand these
things
b I've invested a small amount of money in equi es or
mutual funds and/or I know what these things are
c I've invested a fair amount of money in equi es or ✓
equity mutual funds and/or have a good
understanding of equi es
d I've invested/been inves ng in gold, futures and
op ons and interna onal shares and/or am very
knowledgeable about investment
e I have a company re rement plan and/or other
investments, but I'm not sure where I'm invested
and/or I don't fully understand the different asset
classes.
5
Financial Planning

7 I plan to start withdrawing money from my savings

in:
a Less than 5 years
b Five to ten years
c Eleven to fi een years
d More than fi een years ✓

e I am already using my savings

10
8 How do you/would you react to fluctua ons in the
market?
a I am (or would be) very concerned if my investments
lose value and am (or would be) inclined to sell
immediately
b If an investment loses 5 percent per cent over a
quarter, I am (or would be) likely to sell and invest
elsewhere
c I wait (or would wait) un l I have watched the
performance of investment for at least a year or two
before making changes
d Even if poor market condi ons result in significant ✓
losses over several years, I will try and s ck to a
consistent long-term investment plan
10
9 You invest INR 1,00,000 for ten years. Given the best
and worst-case scenarios below, which investment
op on would you choose?
a Best case outcome: INR 500, 000, Worst case
outcome: INR 50,000
b Best case outcome: INR 850, 000, Worst case
outcome: INR 20, 000
c Best case outcome: INR 300, 000, Worst case ✓
outcome: INR 65, 000
d Best case outcome: INR 150, 000, Worst case
outcome: INR 100, 000
4
10 When buying health insurance I choose:
a The lowest excess to ensure maximum cover even
though my policy costs more
Financial Planning

b A moderate level of excess in order to reduce the ✓

premium
c A high excess in order to pay a low premium even
though losses may not be covered
d To carry no health insurance
1

TOTAL SCORE: 69
CATEGORY: Moderate investor

PERSON-2:

Ques on Ques on Points

number
1 My present age is:
a Under 31 ✓

b 31 to 40
c 41 to 50
d 51 to 60
e 60 and above
15
2 The current value of my savings/capital (including
Investment in property, shares, Mutual Funds,
provident funds, Gold, Bank Deposits etc.) is equal
to:
a Less than half of my current (or last earned) annual ✓
income
b Half of my annual income (salary, pension, interest,
etc.)
c Double my current (or last earned) annual income
d Three mes my current (or last earned) annual
income
e Five mes my annual income
2
3 Within the next few years I expect my income to:
a Decline in real terms
b Stay about the same (gains equal to infla on)
c Increase gradually (slightly faster than infla on) ✓

d Increase drama cally (much faster than infla on)

Financial Planning

e Fluctuate and be unpredictable*

6
4 Regarding dependants (minor or adult) and other
major costs that I need to incur before re rement:
a I will be able to meet all expenses for dependants
(including educa on) and other costs out of my
income
b I will have to withdraw a small por on of my savings ✓
to pay for dependants and other costs
c I will have to withdraw more than half of my savings
to pay for dependants and other costs
d I expect that paying for dependants and other costs
will leave me with very li le savings when I re re
6
5 Based on my lifestyle and medical history, I expect
my risk of serious health problems over the next 10
years to be:
a Above average
b Average
c Low ✓

d Almost nil
5
6 My investment experience is best described as
follows:
a I've never invested in equi es, either directly or
through mutual funds and do not understand these
things
b I've invested a small amount of money in equi es or ✓
mutual funds and/or I know what these things are
c I've invested a fair amount of money in equi es or
equity mutual funds and/or have a good
understanding of equi es
d I've invested/been inves ng in gold, futures and
op ons and interna onal shares and/or am very
knowledgeable about investment
e I have a company re rement plan and/or other
investments, but I'm not sure where I'm invested
and/or I don't fully understand the different asset
classes.
Financial Planning

2
7 I plan to start withdrawing money from my savings
in:
a Less than 5 years
b Five to ten years ✓

c Eleven to fi een years

d More than fi een years
e I am already using my savings
4
8 How do you/would you react to fluctua ons in the
market?
a I am (or would be) very concerned if my investments
lose value and am (or would be) inclined to sell
immediately
b If an investment loses 5 percent per cent over a
quarter, I am (or would be) likely to sell and invest
elsewhere
c I wait (or would wait) un l I have watched the ✓
performance of investment for at least a year or two
before making changes
d Even if poor market condi ons result in significant
losses over several years, I will try and s ck to a
consistent long-term investment plan
6
9 You invest INR 1,00,000 for ten years. Given the best
and worst-case scenarios below, which investment
op on would you choose?
a Best case outcome: INR 500, 000, Worst case ✓
outcome: INR 50,000
b Best case outcome: INR 850, 000, Worst case
outcome: INR 20, 000
c Best case outcome: INR 300, 000, Worst case
outcome: INR 65, 000
d Best case outcome: INR 150, 000, Worst case
outcome: INR 100, 000
6
10 When buying health insurance I choose:
a The lowest excess to ensure maximum cover even
though my policy costs more
Financial Planning

b A moderate level of excess in order to reduce the ✓

premium
c A high excess in order to pay a low premium even
though losses may not be covered
d To carry no health insurance
1

TOTAL SCORE: 53
CATEGORY: Moderate investor

PERSON-3:

Ques on Ques on Points

number
1 My present age is:
a Under 31
b 31 to 40 ✓

c 41 to 50
d 51 to 60
e 60 and above
12
2 The current value of my savings/capital (including
Investment in property, shares, Mutual Funds,
provident funds, Gold, Bank Deposits etc.) is equal
to:
a Less than half of my current (or last earned) annual
income
b Half of my annual income (salary, pension, interest,
etc.)
c Double my current (or last earned) annual income ✓

d Three mes my current (or last earned) annual

income
e Five mes my annual income
6
3 Within the next few years I expect my income to:
a Decline in real terms
b Stay about the same (gains equal to infla on)
c Increase gradually (slightly faster than infla on) ✓

d Increase drama cally (much faster than infla on)

e Fluctuate and be unpredictable*
Financial Planning

6
4 Regarding dependants (minor or adult) and other
major costs that I need to incur before re rement:
a I will be able to meet all expenses for dependants ✓
(including educa on) and other costs out of my
income
b I will have to withdraw a small por on of my savings
to pay for dependants and other costs
c I will have to withdraw more than half of my savings
to pay for dependants and other costs
d I expect that paying for dependants and other costs
will leave me with very li le savings when I re re
9
5 Based on my lifestyle and medical history, I expect
my risk of serious health problems over the next 10
years to be:
a Above average
b Average
c Low ✓

d Almost nil
5
6 My investment experience is best described as
follows:
a I've never invested in equi es, either directly or
through mutual funds and do not understand these
things
b I've invested a small amount of money in equi es or
mutual funds and/or I know what these things are
c I've invested a fair amount of money in equi es or
equity mutual funds and/or have a good
understanding of equi es
d I've invested/been inves ng in gold, futures and ✓
op ons and interna onal shares and/or am very
knowledgeable about investment
e I have a company re rement plan and/or other
investments, but I'm not sure where I'm invested
and/or I don't fully understand the different asset
classes.
8
Financial Planning

7 I plan to start withdrawing money from my savings

in:
a Less than 5 years
b Five to ten years
c Eleven to fi een years ✓

d More than fi een years

e I am already using my savings
8
8 How do you/would you react to fluctua ons in the
market?
a I am (or would be) very concerned if my investments
lose value and am (or would be) inclined to sell
immediately
b If an investment loses 5 percent per cent over a
quarter, I am (or would be) likely to sell and invest
elsewhere
c I wait (or would wait) un l I have watched the
performance of investment for at least a year or two
before making changes
d Even if poor market condi ons result in significant ✓
losses over several years, I will try and s ck to a
consistent long-term investment plan
10
9 You invest INR 1,00,000 for ten years. Given the best
and worst-case scenarios below, which investment
op on would you choose?
a Best case outcome: INR 500, 000, Worst case ✓
outcome: INR 50,000
b Best case outcome: INR 850, 000, Worst case
outcome: INR 20, 000
c Best case outcome: INR 300, 000, Worst case
outcome: INR 65, 000
d Best case outcome: INR 150, 000, Worst case
outcome: INR 100, 000
6
10 When buying health insurance I choose:
a The lowest excess to ensure maximum cover even
though my policy costs more
Financial Planning

b A moderate level of excess in order to reduce the ✓

premium
c A high excess in order to pay a low premium even
though losses may not be covered
d To carry no health insurance
1

TOTAL SCORE: 71
CATEGORY: Moderately aggressive investor