Step 1 — Risk Profiling
Every investor completes the Risk Profiling Questionnaire before any recommendation. The questionnaire covers age, income commitment, goal provisioning, return expectation, investment horizon, preferred asset mix, loss tolerance, investment temperament and income stability. Responses are scored and the investor is placed in one of five risk categories: Conservative, Balanced, Moderate Aggressive, Aggressive or Very Aggressive. A copy of the scored profile is shared with the investor.
Step 2 — Suitability Mapping
Recommendations are restricted to scheme categories mapped to the investor's risk category and investment horizon in the Suitability Matrix below.
| Risk category | Up to 1 year | 1 to 3 years | 3 to 5 years | 5 years and more |
|---|---|---|---|---|
| Conservative | Overnight, Liquid, Money Market | Ultra Short / Low / Short Duration, Banking & PSU, Corporate Bond | Short Duration, Corporate Bond, Conservative Hybrid | Conservative Hybrid, Equity Savings, DAAF |
| Balanced | Overnight, Liquid, Money Market, Arbitrage | Short Duration, Corporate Bond, Equity Savings | Conservative Hybrid, Equity Savings, Balanced Advantage | Balanced Advantage, Multi Asset Allocation, Aggressive Hybrid |
| Moderate Aggressive | Liquid, Money Market, Arbitrage | Equity Savings, Balanced Advantage, Multi Asset Allocation | Aggressive Hybrid, Large Cap, Large Cap Index / ETF | Large Cap, Flexi Cap, Large & Mid Cap, Gold Fund of Funds |
| Aggressive | Liquid, Money Market, Arbitrage | Balanced Advantage, Multi Asset, Aggressive Hybrid | Large Cap, Flexi Cap, Large & Mid Cap, Multi Cap, ELSS | Flexi Cap, Multi Cap, Value / Contra, Focused, Mid Cap, ELSS, Small Cap |
| Very Aggressive | Liquid, Money Market, Arbitrage | Aggressive Hybrid, Multi Asset, Large Cap | Flexi Cap, Multi Cap, Large & Mid Cap, Mid Cap, ELSS, Small Cap | Mid Cap, Small Cap, Sectoral / Thematic, International Fund of Funds |
Step 3 — Recommendation and Records
Each recommendation records the goal, horizon, risk category and the schemes suggested. Illustrations, where used, assume a maximum CAGR of 12% p.a. as per AMFI Best Practices Guidelines. Discussions on risk and suitability are logged.
Step 4 — Unsuitability
Where an investor chooses a scheme outside the mapped categories, a written unsuitability communication is issued stating the mismatch, and the investor's signed acknowledgement is obtained before execution.
Step 5 — Review
Portfolios and risk profiles are reviewed annually and as and when required by the investor, and on any material change in the investor's circumstances.
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Grievance Redressal Officer: Mr. Chandresh Rawka · 9829038832 · c.rawka@gmail.com