RPM

What is a Risk Profile Management?

A risk profile is an evaluation of an individual’s willingness and ability to take risks. A risk profile is important for determining a proper investment asset allocation for a portfolio. Organizations use a risk profile as a way to mitigate potential risks and threats.

Key Point’s To  Remember

  • A risk profile is an evaluation of an individual’s willingness and ability to take risks.
  • A risk profile is important for determining a proper investment asset allocation for a portfolio.
  • Organizations use a risk profile as a way to mitigate potential risks and threats.

The RPM score of the client may range from 23 to 62, based on the answers selected by the client in the risk profiling questionnaire.

High Risk: High risk clients are aggressive traders who are willing to take high risk with their investments. (Score >55)

Moderate Risk: Moderate risk clients prefer to take calculated risk which does not exceed above their capability. (Score 46-55)

Medium Risk: Medium risk clients are less aggressive in their trades but they understand the level of risk involved in trades and invest according to it. (Score 36-45)

Low Risk: Low risk category is for traders/ investors who invest in basically in equity cash and similar products which involve less risk in the market. (Score 23-35)

Risk Based Classification of the Services

No.ProductRangeRisk
1 All Alpha & Zeta Products Only 28-36 Low
2 All Beta & Theta Products & Any of Above Products 37-44 Medium
3 All Gama, Sigma and Omega Products & Any of Above Products 45-55 Moderate
4 All Delta & Any of Above Products > 56 High

1 Step 1
Get your RPM score.
1. What is your Age Group?*
2. What is your income source?*
3. How many financially dependent persons you have?*
4. What is your income range per annum?*
5. What is your total asset value?*
6. What is your total liability value ?*
7. What is your investment capital ?*
8. What percentage of monthly income is allocated to all EMI ?*
9. Which investment avenue you are quite experienced with?*
10. Have you planned for expenses like child’s higher education, marriage, purchase of house, medical, hospitalization, retirement etc.?*
11. What is your investment horizon and when do you want to start withdrawing the money from your portfolio ?*
12. What is your experience with investment in stock market &/or commodity market ?*
13.What would you do if your investment amount is making loss ?*
14. Which of the following best describes you as an investor?*
Applicant Declarationpick one!

YOUR SCORE IS [field11+field51+field60+field59+field58+field57+field56+field55+field54+field53+field52+field62+field67+field66+field64+field63+field61]

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