ASSET ALLOCATION IN FINANCIAL PLANNING

Project Report

Submitted to

HEC GROUP OF INSTITUTIONS, HARIDWAR

Department of Commerce In partial fulfillment of the requirements

for

the award of the Degree of

MASTERS OF BUSINESS ADMINASTRATION

Submitted By: - SALIL TIMSINA

MBA-IB

Research Guide: -

Dr. TRAPTI AGGARWAL

[Head of Department]

DEPARTMENT OF BUSINESS MANAGEMENT

HEC GROUP OF INSTITUTIONS, HARIDWAR

Jagjeetpur, Laksar Road, Haridwar, Uttarakhand

1
 HEC GROUP OF INSTITUTIONS
(Affiliated to HNB Garhwal University, Srinagar, Uttarakhand)

Jagjeetpur, Laksar Road, Haridwar, Uttarakhand

Certificate
This is to certify that the work embodies in this project entitled
"financial planning". Being submitted by Salil Timsina,
Enrollment no: G213120203 for partial fulfillment of the
requirement for the award of MASTERS OF BUSINESS
ADMINISTRATION discipline to HEC GROUPOF INSTITUTION,
HARIDWAR during academic year 2023 is a record of bonafide
work, undertaken by her in the supervision of undersigned.

Guided by Approved by

Dr. Trapti Aggarwal

(HOD Commerce)

2
 Declaration

I, Salil Timsina hereby declare that the internship report on "ASSET

ALLOCATION IN FINANCIAL PLANNING" with reference to "VFN
GROUP" prepared by me under the guidance of Dr. Trapti Aggarwal,
Head of the department of Commerce of HEC GROUP OF
INSTITUTION , HARIDWAR.

I also declare that this internship report is towards the partial

fulfillment of the institute’s regulations for the award of the degree
of Master of Business Administration by HEC group of institution,
Haridwar.

I have undergone under finance internship for a period of Four

weeks. I further declare that this report is based on the original study
undertaken by me and take some help from Internet and some other
Reports.

Signature of student

Enrolment no: -

Date: -

3
 Acknowledgement

Behind every study there stands a myriad of people whose help and
contribution make it successful. Since such a list will be a
prohibitively long. I may be excused for important omission.

At first, I would like to be very thankful to all the teacher of faculties

of commerce of my institution for providing me a time and
opportunities to work and get a practical experience of the company.
It would not have been completed without yours hard work and
Support towards me.

I am grateful to all who helped & guided me at every stage of my

work. Their constant appraisal & encouragement helped me to
accomplish my training smoothly.

I am thankful to Dr. Trapti Aggarwal for the cooperation extended to

me in compiling the project report.

I gained a lot of knowledge & experience by observing their way of

working which is surely to be admired. I extend my gratitude to the
entire staff that provided a very comfortable environment which
helped me deliver this performance.

Place: - Haridwar

Date: - Signature of the student

4
 CONTENTS

Chapter-1 Introduction
1.1 What is asset allocation? 9
1.2 Why asset allocation is important?
1.3 What is Financial Planning?

Chapter-2 About the company? 14

Chapter-3 Objectives
3.1 Purpose of study 16
3.2 Objective of study
3.3 Literature review

Chapter-4 Conclusion 26

Chapter-5 Appendix 27

5
 Abstract
Asset allocation establishes the framework of an investor's portfolio
and sets forth a plan of specifically identifying where to invest one's
money. Advocates conclude that proper asset allocation has the
potential to increase investment results and lower overall portfolio
volatility. Critics argue that the interconnectedness of financial
markets makes traditional asset allocation less beneficial.

While asset allocation plan can be a valuable tool to help reduce

overall volatility, diversification does not guarantee a profit or
protect against loss. All investments involve risks, including possible
loss of principal. Typically, the greater the potential return, the more
risk involved. Generally, investors should be comfortable with some
fluctuation in the value of their investments, especially over the
short term. Stock prices fluctuate, sometimes rapidly and
dramatically, due to factors affecting individual companies, particular
industries or sectors, or general market conditions. Small-
capitalization stocks can be more volatile than large- capitalization
stocks. Bond prices generally move in the opposite direction of
interest rates. Thus, as the prices of bonds in a fund adjust to a rise in
interest rates, that funds share price may decline. Foreign investing
carries additional risks such as currency and market volatility and
6
political or social instability; risk which are heightened in emerging
markets. Hedge strategies may employ a wide range of investment
techniques, including the use of derivatives, leverage, currency
management strategies, short sales, and merger arbitrage, which
may result in significant volatility and loss of principal. These risks are
described in a fund's prospectus.

Financial management refers to the application of general

management principles to the various financial resources which are
projecting. This encompasses planning, organizing, directing and
controlling of the financial activities. Financial planning is process of
framing objectives, policies, procedures, programs and budgets
regarding the financial activities. This ensure effective and adequate
financial and investment policies, adequate funds have to be
ensured, ensuring a reasonable balance between outflow and inflow
of funds, ensuring suppliers of funds, preparation of growth and
expansion programs which helps in long-run survival of the company,
reduction of uncertainties with regards to changing market trends
which company could be faced with, ensuring stability and
profitability.

Having your own money in your hand every month does not
guarantee you the lifestyle you deserve throughout your life.
Circumstances and needs always keep changing. Today's sound
financial situation does not guarantee an equally sound future. And
hence, no or improper financial planning can be disastrous. A loss of
income, even temporary, can eat into your savings or can lead to
debt. An uninsured loss can wipe out your accumulated wealth.
Insufficient savings can force a reduced lifestyle during retirement.
Frequent or unplanned borrowings can leave negative money i.e.,
debts for future. Also, poor tax planning can result in paying higher
taxes than what you are liable to pay. All this, combined with
7
changes in your life cycle needs and/or external economic changes
can make you and your future generations financially vulnerable. You
would need to plan and manage your current income (the money
you earn today) and your future income (money you can expect to
earn in future) according to your life cycle needs. A proper financial
planning will help you achieve financial freedom, when you would no
longer need to work for money, instead your money would work for
you.

This Project Report examines popular advice on portfolio allocation

among cash, bonds and stocks. It documents that this advice is
inconsistent with the mutual-fund separation theorem, which states
that all investors should hold the same composition of risky assets. In
contrast to the theorem, popular advisors recommend that
aggressive investors hold a lower ratio of bonds stocks than
conservative investors.

8
CHAPTER-1
INTRODUCTION
1.1 What is asset allocation?
Asset allocation involves dividing your investments among different
assets, such as stocks, bonds, and cash. The asset allocation decision
is a personal one. The allocation that works best for you changes at
different times in your life, depending on how long you have to
invest and your ability to tolerate risk.

Asset allocation is an investment strategy that aims to balance risk

and reward by dividing an investment portfolio among different
types of asset classes such as equity, fixed income, cash and cash
equivalents, real estate, etc. The theory is that asset allocation helps
the investor to lessen the impact of risk their portfolio is exposed to
as each asset class has a different correlation to one another.

9
As the name implies, asset allocation entails apportioning or
distributing portfolio investments across asset classes such as equity,
debt, gold, real estate, cash or alternates. Diversification is the basic
premise of asset allocation as investable asset classes are decided
based on goals and risks, and the need to mitigate portfolio volatility.
The main goal of asset allocation is to minimize volatility and
maximize returns. The process involves assessing your risk/return
profile and then investing money in a certain proportion in asset
categories that do not all respond to the same market forces, in the
same way, at the same time. Asset allocation will vary from one
investor to another.

Asset allocation is the mix of different asset classes e.g., equity, debt,
gold etc. in an investment portfolio. The aim of asset allocation is to
balance risk and returns in accordance with different financial goals
and risk appetites. Unfortunately, asset allocation is not given its due
importance by many investors in India and we see investment
portfolios heavily skewed towards particular asset classes without
factoring in risk and return consideration.

1.2 Why asset allocation is important?

Risk and returns are directly related but risk is a double edged sword.
If you take too little risk, you may not be able to make the money
needed for your financial goals. On the other hand, if you take too
much risk, you will expose your financial goals to uncertainties of
capital markets. Right asset allocation means that you take the
optimal amount of risk to meet your short term, medium term or
long term financial goals.

10
Irrational behavior is very common in investing because greed and
fear plays a big role in how we invest. When the market is high,
people put more and more money in stocks expecting market to go
even higher. When the market is low, people sell stocks fearing
market to go even lower. Such irrational actions harm the long term
financial interests of the investors. An asset allocation based
approach takes emotions out of investing and keeps you disciplined.

The asset allocation plan lays out how much risk you need to take
based on how much risk you can afford to take. If you take more risk
that you can afford to take then you are exposing your portfolio to
unnecessary volatility and downside risk. At the same time, if you are
taking less risk than what you can afford then you are making a sub-
optimal allocation and that will result in lower than expected returns.
This could have a larger implication for your long term financial plan.

11
1.3What is financial planning?
Financial Planning is one of the major planning that is required to be
conducted by the management. Financial Planning includes all the
activities which are related to the procurement of funds, investing
those funds, and the return expected from the investment done.
Financial Planning also ranges from tax planning which is an
important activity. This planning is very important for a business to
function, in this regard we have initiated the discussion on this topic
‘Financial Planning’ which is to be studied in greater detail. The scope
of this topic is vast hence for a conceptualized study this is to be
referred to.

Financial Planning includes all the activities that apply general

management standards to the financial resources of a firm such as
planning, directing, organizing, procurement of funds, investment,
and return of the funds. In this article, students will learn about the
meaning, objectives, and features of financial planning.

Financial planning is defined as a document that has records of a

business owner or firm's financial situation along with planning on
the spending of money to achieve a certain goal by working by a
well-devised plan. Financial planning may be made independently or
by an experienced planner.

It is basically a financial budget plan, which helps organize the

business and includes a set of goals that are supposed to be followed
by the firm or business owner to save and spend accordingly. It helps
distribute various monetary expenses such as rent, while at the same
time saving some amount of money as short-term or long-term
savings. 

12
Financial Planning is the process of estimating the capital
requirement and also determining the competitive elements
required for financial planning. This is a plan which has been defined
as a document that contains a person's current money situation with
the long-term monetary goals, the strategies to achieve those goals
on the basis of the current fund. A financial plan may be devised and
drafted independently or with the assistance of a financial planner.
The first step in the creation of a financial plan is to involve collecting
the numbers from the web-based accounts into a document or a
spreadsheet. 

13
CHAPTER-2
About the company

VFN GROUP

VFN is one of the oldest and a renowned Financial Advisory Firm in

Delhi. VFN Group offers all types of Financial Products under one
roof.

The Management team has more than 20 years of experience in

financial sector.

The Firm is well equipped to provide scientific updated technology

based portfolio advice to all its clients.

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TAX ADVISORY

TIME & PROCESS

ONLINE FILING SERVICE

TAX CALCULATORS

GST Registration/ Return Filing

VFN Group is a boutique wealth advisory organization deals in tax

and wealth advisory, Portfolio Management & investment services,
Risk Management & insurance Services and Real Estate Solution.

Vikas Gupta is Chairman and MD at VFN Group.

15
CHAPTER-3
Objectives and research methodology
3.1 Purpose of study
Numerous studies and research have been conducted by various
researchers and scholars of different universities and research
centers from all over the world to understand about investor's
perception and psychology while investing in different markets.

At one time, long, long back, everything went into the piggy bank.
Savings meant putting money in the piggy bank. Then came the
trusted old fixed deposits, government schemes and gold. The
increase in financial literacy saw the advent of mutual funds, PMS
products and AIFs. With so many investment opportunities available,
it becomes difficult for an investor to choose investments that are
best suited for him and that can help in achieving financial goals. Our
investment journey evolves in different ways, with many a twists and
turns. We have different types of goals which have varying return
requirements in a landscape of changing risk profiles. As investors, if
we just invest in one asset class today and then go to sleep, we are
likely to wake up to a rude shock tomorrow. Much like our
investment journey, the assets that we invest in also have varying
risk/return profiles. In order to ensure that we have the maximum
probability of meeting our goals, we must focus on "Asset
Allocation".

The first step towards asset allocation is to examine one's finances

and understanding risk tolerance and risk appetite. One should look
at all aspects of his/her finances while allocating assets. Investors can
engage with a financial planner to undertake risk profiling tests

16
which can accurately capture their risk appetite. Next step is to be
cognizant of one's financial goals and liabilities and arrive at a
required rate of return to meet financial goals. Subsequently, one
arrives at an asset allocation that would help minimize risk while at
the same time optimize returns.

One of the most important questions which we face in our financial

life is how much we need to save and invest? The amount is precious
as it comes from you sacrificing on today's luxuries for tomorrow's
comfort. Therefore, the money you decide to save is too important
to be invested without a strategy. It is for this reason; asset
allocation becomes extremely important. Simply put, it divides your
hard-earned investment into various asset classes that gives you the
potential to earn higher returns while lowering the risk by
diversification.

3.2 Objective of study

Investment objectives are what the investment professionals aim to
achieve for their investors and should closely correspond with the
needs of the investors. Investment objectives create a reference
point, against which portfolio performance is evaluated. Investment
objectives can be broadly categorized as return objectives and risk
objectives (also known as risk tolerance).

Asset allocation helps us to stay in control of our financial plan,

tailoring our investments to fit our goals and tolerance for risk.
Reduce risk: portfolio diversification may reduce the amount of
volatility you experience by simultaneously spreading market risk
across many different asset classes.

Improve you're your opportunity to earn more consistent returns

over time: by investing in several asset classes, you may improve

17
your chances of participating in market gains and lessen the impact
of poor performing asset categories on your overall portfolio returns.

Stay focused on your goals: a well allocated portfolio alleviates the

need to constantly adjust investment positions to chase market
trends, and can help reduce the urge to buy sell in response to the
markets short term ups and downs.

Risk tolerance is your ability and willingness to lose some or all of

your original investment in exchange for greater potential returns.
An aggressive investor, or one with a high-risk tolerance, is more
likely to risk losing money in order to get better results.

Optimize Returns: every asset class will generate different returns

and react in a dissimilar manner to similar market conditions.
Therefore, by spreading investments across asset classes, an investor
can optimize portfolio returns.

Minimize Risks: risk in inherent in all investments. However, in some

investments the risk is high while in others it is low. Asset allocation
ensures that the portfolio is diversified and that portfolio risk is
spread across asset classes.

Alignment with time-horizon: time horizon of goals and risk profile of

the investor, strongly influence the asset allocation decision. A
portfolio needs to have a mix of equities, debt and cash to meet
both, short-term as well as long-term needs. Asset allocation helps
investors strike the balance between investments for the short-term
and investments for the long-term.

Minimize Taxes: different asset classes are taxed in different ways.By

allocating investments across asset classes, an investor can minimize
tax liability.

18
3.3 Literature review
Need of asset allocation
At one time, long, long back, everything went into the piggy bank.
Savings meant putting money in the piggy bank. Then came the
trusted old fixed deposits, government schemes and gold. The
increase in financial literacy saw the advent of mutual funds, PMS
products and AIFs. With so many investment opportunities available,
it becomes difficult for an investor to choose investments that are
best suited for him and that can help in achieving financial goals. Our
investment journey evolves in different ways, with many a twists and
turns. We have different types of goals which have varying return
requirements in a landscape of changing risk profiles. As investors, if
we just invest in one asset class today and then go to sleep, we are
likely to wake up to a rude shock tomorrow. Much like our
investment journey, the assets that we invest in also have varying
risk/return profiles. In order to ensure that we have the maximum
probability of meeting our goals, we must focus on "Asset
Allocation".

19
How do we do asset allocation?
The first step towards asset allocation is to examine one's finances
and understanding risk tolerance and risk appetite. One should look
at all aspects of his/her finances while allocating assets. Investors can
engage with a financial planner to undertake risk profiling tests
which can accurately capture their risk appetite. Next step is to be
cognizant of one's financial goals and liabilities and arrive at a
required rate of return to meet financial goals.

Subsequently, one arrives at an asset allocation that would help

minimize risk while at the same time optimize returns. Online
calculators or financial advisers help investors in arriving at the ideal
asset allocation. While an individual investors' investment portfolio
would be unique to his risk/return requirements, there are a few
general rules of thumbs that one can take guidance from.

Generally, an investor's ability to absorb risk is inversely proportional

with his age. This means that the younger an investor is, the better is
his ability to absorb risk. Consequently, investors just starting off on
their investment journey can allocate a higher proportion of their
assets to equities. This diminishes as the investor ages.

Asset allocation, once achieved, should be periodically reviewed and

re-aligned, if needed, depending on changing circumstances and
needs.

20
Beginners' Guide to Asset Allocation,
Diversification, and Rebalancing

Even if you are new to investing, you may already know some of the
most fundamental principles of sound investing. How did you learn
them? Through ordinary, real-life experiences that have nothing to
do with the stock market.

For example, have you ever noticed that street vendors often sell
seemingly unrelated products such as umbrellas and sunglasses?
Initially, that may seem odd. After all, when would a person buy both
items at the same time? Probably never - and that's the point. Street
vendors know that when it's raining, it's easier to sell umbrellas but
harder to sell sunglasses. And when it's sunny, the reverse is true. By
selling both items - in other words, by diversifying the product line -
the vendor can reduce the risk of losing money on any given day.

If that makes sense, you've got a great start on understanding asset

allocation and diversification. This publication will cover those topics
more fully and will also discuss the importance of rebalancing from
time to time.

21
Let's begin by looking at asset allocation.
Asset Allocation
Asset allocation involves dividing an investment portfolio among
different asset categories, such as stocks, bonds, and cash. The
process of determining which mix of assets to hold in your portfolio
is a very personal one. The asset allocation that works best for you at
any given point in your life will depend largely on your time horizon
and your ability to tolerate risk.

Time Horizon
Your time horizon is the expected number of months, years, or
decades you will be investing to achieve a particular financial goal.
An investor with a longer time horizon may feel more comfortable
taking on a riskier, or more volatile, investment because he or she
can wait out slow economic cycles and the inevitable ups and downs
of our markets. By contrast, an investor saving up for a teenager's
college education would likely take on less risk because he or she has
a shorter time horizon.

Risk Tolerance
Risk tolerance is your ability and willingness to lose some or all of
your original investment in exchange for greater potential returns.
An aggressive investor, or one with a high-risk tolerance, is more
likely to risk losing money in order to get better results. A
conservative investor, or one with a low-risk tolerance, tends to
favor investments that will preserve his or her original investment. In
the words of the famous saying, conservative investors keep a "bird
in the hand," while aggressive investors seek "two in the bush."

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Risk versus Reward
When it comes to investing, risk and reward are inextricably
entwined. You've probably heard the phrase "no pain, no gain" -
those words come close to summing up the relationship between
risk and reward. Don't let anyone tell you otherwise. All investments
involve some degree of risk. If you intend to purchase securities -
such as stocks, bonds, or mutual funds - it's important that you
understand before you invest that you could lose some or all of your
money.

Investment Choices
While the SEC cannot recommend any particular investment product,
you should know that a vast array of investment products exists -
including stocks and stock mutual funds, corporate and municipal
bonds, bond mutual funds, lifecycle funds, exchange-traded funds,
money market funds, and U.S. Treasury securities. For many financial
goals, investing in a mix of stocks, bonds, and cash can be a good
strategy. Let's take a closer look at the characteristics of the three
major asset categories.

Stocks
Stocks have historically had the greatest risk and highest returns
among the three major asset categories. As an asset category, stocks
are a portfolio's "heavy hitter," offering the greatest potential for
growth. Stocks hit home runs, but also strike out. The volatility of
stocks makes them a very risky investment in the short term. Large
company stocks as a group, for example, have lost money on average
about one out of every three years. And sometimes the losses have
been quite dramatic. But investors that have been willing to ride out

23
the volatile returns of stocks over long periods of time generally have
been rewarded with strong positive returns.

Bonds
Bonds are generally less volatile than stocks but offer more modest
returns. As a result, an investor approaching a financial goal might
increase his or her bond holdings relative to his or her stock holdings
because the reduced risk of holding more bonds would be attractive
to the investor despite their lower potential for growth. You should
keep in mind that certain categories of bonds offer high returns
similar to stocks. But these bonds, known as high-yield or junk bonds,
also carry higher risk.

Cash
Cash and cash equivalents - such as savings deposits, certificates of
deposit, treasury bills, money market deposit accounts, and money
market funds are the safest investments, but offer the lowest return
of the three major asset categories. The chances of losing money on
an investment in this asset category are generally extremely low. The
federal government guarantees many investments in cash
equivalents. Investment losses in non-guaranteed cash equivalents
do occur, but infrequently. The principal concern for investors
investing in cash equivalents is inflation risk. This is the risk that
inflation will outpace and erode investment returns over time.

Stocks, bonds, and cash are the most common asset categories.
These are the asset categories you would likely choose from when
investing in a retirement savings program or a college savings plan.
But other asset categories - including real estate, precious metals
and other commodities, and private equity - also exist, and some
investors may include these asset categories within a portfolio.
24
Investments in these asset categories typically have category-specific
risks. Before you make any investment, you should understand the
risks of the investment and make sure the risks are appropriate for
you.

Why Asset Allocation Is So Important

By including asset categories with investment returns that move up
and down under different market conditions within a portfolio, an
investor can protect against significant losses. Historically, the
returns of the three major asset categories have not moved up and
down at the same time. Market conditions that cause one asset
category to do well often cause another asset category to have
average or poor returns. By investing in more than one asset
category, you'll reduce the risk that you'll lose money and your
portfolio's overall investment returns will have a smoother ride. If
one asset category's investment return falls, you'll be in a position to
counteract your losses in that asset category with better investment
returns in another asset category.

25
CHAPTER-4
CONCLUSION

26
CHAPTER-5
Appendix

Questionnaire
Asset allocation in financial planning.

Purpose of the study: This is a study on importance of asset

allocation in financial planning that is being conducted by Mr. Salil
Timsina, student of MBA-IB, at HEC Group of Institutions, Haridwar.
The purpose of this study is to analyze the asset allocation in
financial planning.

What will be done: - You will complete a survey, which will take
around 15 minutes to complete. The survey includes questions about
your financial awareness and asset allocation knowledge. And other
survey will address your awareness towards investments. We will
also ask for some demographic information (e.g., age, marital status,
number of family members, educational qualification) so that we can
accurately describe the general ideas of the group of participants
participating in the study.

Benefits of this study: Though you will not gain any direct advantage
through the participating in this study, you will be contributing to
knowledge about risk perceptions and financial awareness.

Risks or discomforts: - No risks or discomforts are anticipated from

taking part in this study. If you decide to quit at any time before you
have finished the questionnaire, your answer will NOT be recorded.

27
Confidentiality: - your responses will be kept completely
confidential. We will NOT know your IP address when you respond to
the internet survey.

How the findings will be utilized: - The results of the study will be
used for scholarly purpose only. The results from the study will be
presented in educational settings and at professional conferences,
and the results might be published in a professional journal in the
field of financial investments studies.

Contact information: - if you have any concerns or questions about

this study, please contact Mr. Salil Timsina at
saliltimsina19@gmail.com

Requirement

By beginning the survey, you acknowledge that you have read this
information and agree to participate in this research, with the
knowledge that you are free to withdraw your participation at any
time without penalty.

Select only one

Yes, I would like to proceed.

No, I would not like to participate in this study. Stop filling out this
form.

Personal details

1. Gender: a. Male b. Female

2. Age:

3. Academic qualifications:

4. Marital status: a. Married b. Unmarried

28
5. No. of dependents:

6. Occupation:

7. Annual income:

8. Do you have a mortgage loan on the house property?

a. Yes b. No

Questions

1. What type of investment instruments do you know, i.e., you can

describe and explain their characteristics and risks associated with
them?

a. Money market instruments

b. Bonds/Notes Stocks and exchange-traded funds (ETF)

c. Foreign exchange derivatives

d. Interest rate derivatives structured products

e. Leveraged products

29
2. What type of investment instruments have you traded or invested
into? (Check, if you made at least 3 trades in last 3 years.)

a. Money market instruments Bonds/Notes Stocks and

exchange-traded funds (ETF)

b. Foreign exchange derivatives.

c. Interest rate derivatives

d. Structured products

e. Leveraged products

3. What type of investment services/ transactions do you know i.e.,

you can describe and explain their characteristics and risks
associated with them?

a. Trading with investment instrument

b. REPO transactions and other OTC transactions with

investment instruments

c. Margin trading and/or short selling

d. Asset management which includes investment instruments

Investment advice

4. What is the nature of your investments?

a. Saving of available funds

b. Hedging

c. Speculation

5. My attitude towards risk is as follows:

a. I expect guarantee of a principal despite minimum yield

30
 b. I expect return on inflation level; limited losses are
acceptable

c. I expect a higher annual return and I am aware of the

possibility of higher losses

d. I expect a high annual return and accept the possibility of

high volatility, including loss of the entire principal

6. I understand the concept of risk and volatility associated with

investments and I agree with the following statement

a. I do not know term "volatility"

b. I do not want to do risky investments. My primary

investment objective is long-term maintenance of assets with
possible temporary immaterial price changes

c. I will not be able to achieve long-term expected returns

without accepting risks

7. How long have you been investing?

a. Less than a year or not at all

b. 1 to 5 years

c. 5 years or more

8. How often do you invest?

a. Exceptionally or not at all

b. About once per quarter

c. About once per month

d. More than once per month

31