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
Know Your Risk Profile
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.