Know All About Risk Profiles
Risk profiling is the process of assessing an individual’s willingness and ability to take financial risks. It considers goals, time horizon, income, and emotional tolerance to determine a suitable investment strategy.
Conservative Profile
Conservative investors prioritize capital preservation and stability, typically choosing low-risk assets.
Suggested Portfolio Allocation
- Investment Objective: Capital Preservation
- Equity (Stocks): 10% – 25%
- Fixed Income: 75% – 90%
- Key Feature: Low volatility
Moderate Profile
Moderate investors seek a balance between growth and stability, accepting some volatility for better returns.
Suggested Portfolio Allocation
- Investment Objective: Balanced Growth & Income
- Equity (Stocks): 40% – 60%
- Fixed Income: 40% – 60%
- Key Feature: Balanced risk
Aggressive Profile
Aggressive investors aim for maximum capital growth and accept high volatility and short-term losses.
Suggested Portfolio Allocation
- Investment Objective: Maximum Growth
- Equity (Stocks): 70% – 85%
- Fixed Income: 15% – 30%
- Key Feature: High risk–high reward
Very Aggressive Profile
Very aggressive investors focus on maximum long-term returns, often allocating heavily to high-risk growth assets.
Suggested Portfolio Allocation
- Investment Objective: High-Growth Capital Appreciation
- Equity (Stocks): 90% – 100%
- Fixed Income: 0% – 10%
- Key Feature: Highest risk tolerance