The risk profiling questionnaire is a risk assessment tool that assists in measuring risk appetite, mainly the level of aversion for risk of an investor. The questionnaire comprises:

• Details on Personal Finance
• Understanding of Risk and Risk Tolerance
• Risk Capacity or Investor’s Psychology

Risk Capacity: level of risk one can take

Risk Tolerance: level of risk that one prefers

Risk Requirement: level that is needed to achieve the goal

Risk profiling, thus, is setting off realistic risk and return expectations and devise appropriate investment strategy.

The main categories are:

Conservative

Moderately conservative

Aggressive