Risk Calculator

Your Risk profile will help you know your risk-taking capacity. This will help you know your asset allocation i.e. your Debt: Equity mix and how much you should invest in each

Ability
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The younger you are, the more time and flexibility you have to earn and recover from your losses. Hence you have higher risk taking capacity. The older you get, the risk taking capacity reduces as preserving your wealth for your retirement becomes a priority for you.

Ability
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More investible surplus means you can take higher risk as you have more money to invest coupled with the ability to overcome the risk of a loss. When you have limited surplus, your ability to take losses in your stride also gets limited.

Ability
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The way to manage the risk of investing in Equity is by investing for long periods of time. Where you have a longer duration, you can invest more money in Equity. Where you have a short duration, an investment in debt is preferable.

Ability
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When you are financially responsible for more people, the risk that you can afford to take with your investments is lower compared to someone who is on their own.

Ability
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The more money you save, the more you can invest across various asset classes. Higher savings will help you meet your goals faster and eventually allow you to take more risk with your surplus investments.

Willingness
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High risk = high returns is a maxim that governs investments of all kinds. Your comfort with managing investments at their lows will determine your aptitude for taking up riskier investment options.

Willingness
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The best way to take higher risk with investments is to manage it through financial knowledge. When you understand the various financial concepts and how investments work, you can invest in volatile assets as you will be better equipped to manage the associated risk.

Willingness
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Your comfort in investing in Equity will determine how much money you are willing to allocate to an asset class which promises great returns but is very volatile and can result in capital erosion.

Willingness
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It is important to understand what you are expecting from your investments. With a well stated investment objective, you would know exactly the kind of asset class you must invest in that aligns with your goal.

Willingness
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When you invest in volatile assets to make higher returns, you must be ready to accept negative returns and know how to manage the associated risk. If you cannot accept or manage the risk, you are better off investing in assets with less volatility.

Know Your Risk Profile

Output

  • you can take strong and bold decisions when it comes to handling your investments.

    Risk is ‘thrill’ for you. You always focus on how to earn maximum returns and are ready to face any risk that comes in your way to achieving it. You can accept high volatility in your investment/ returns ratio.

  • You prefer to take reasonable and smart decisions when it comes to dealing with your investments. Risk is an opportunity for you. You typically have a tendency to accept moderately high risk which will fructify your investments to returns objective.

  • You are a perfect blend of risk & return - the ‘Balanced’ you. When you think of risk, you think it means ‘possibilities’. When you make a decision, you think of possible gains but you also factor in the possible losses. You understand that there is risk and take measures to possibly avert the same.

  • When you think of risk, you think it means ‘uncertainty’; hence, you avoid decisions that may prove risky in your view. You evaluate a situation from a risk perspective beforehand prior to examining/ analyzing the possible opportunities while making decisions.

  • Defensive - You have a defensive nature when you treat your investments. When you hear the word risk, you can only think of danger and hence, avoid it to the fullest. You are ok with moderate returns and do not wish to take risks.

Drop your email ID and we shall send you details about your risk profile and how the same is used while making investment decisions

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Watch the shoe story video to know more about risk profile

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Check your asset allocation based on your risk profile. Use the tool here.

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Happy Investing !