Risk Analyzer Tool Do you want to improve your personal finances? Start by taking this quiz to get an idea of your investment risk tolerance – one of the fundamental issues to consider when planning your investment strategy, either alone or in consultation with a financial services professional. Choose the response that best describes you – there are no “right” or “wrong” answers. Name Email Phone Number 1. What is your age? Above 58 years 50 to 58 years 40 to 50 years Below 40 years None 2. In general, how would you describe yourself as a risk taker? A real risk avoider Cautious Willing to take risks after completing adequate research A real gambler None 3. You are on a TV game show and asked to choose one of the following. Which one would you choose? Rs 10,0000/- in cash A 50% chance at winning Rs 5,00,000/- A 25% chance at winning Rs 10,00,000/- A 5% chance at winning Rs 20,00,000/- None 4. If you unexpectedly received Rs 50,000 to invest, what would you do? Deposit it in a bank account or fixed deposit Invest it in safe high quality bonds or bond mutual funds Invest it in stocks or stock mutual funds None 5. In terms of experience, how comfortable are you investing in stocks or stock mutual funds? Not at all comfortable Somewhat comfortable Very comfortable None 6. When you think of the word “risk” which of the following words comes to mind first? Loss Uncertainty Opportunity Thrill None 7. Some experts are predicting prices of assets such as gold, silver, and real estate (hard assets) and stocks are going to increase. Most of your investment are in bank fixed deposit and provident fund. What would you do? Hold the fixed deposit Redeem the fixed deposit, put half the proceeds into equity mutual fund, and the other half into hard assets Redeem the fixed deposit and put the total proceeds into hard assets or stocks Redeem the fixed deposit, put all the money into hard assets, and withdraw money from provident fund to buy more None 8. Given the best and worst case returns of the four investment choices below, which one would you prefer? Rs 10,000 gain best case; Rs 0 gain/loss worst case Rs 40,000 gain best case; Rs 10,000 loss worst case Rs 1,20,000 gain best case; Rs 40,000 loss worst case Rs 2,00,000 gain best case; Rs 1,00,000 loss worst case None 9. If you had to invest Rs 1,00,000/-, which of the following investment choices would you find most appealing? 60% in low-risk investments, 30% in medium-risk investments and 10% in high-risk investments 30% in low-risk investments, 40% in medium-risk investments and 30% in high-risk investments 10% in low-risk investments, 40% in medium-risk investments and 50% in high-risk investments None 10. Your current annual take-home income is Under Rs 5,00,000 Between Rs 5,00,000 and Rs 10,00,000 Between Rs 10,00,000 and Rs 20,00,000 Over Rs 20,00,000 None 11. You are financially responsible for More than 5 other persons besides yourself. Between 3 to 4 other persons besides yourself. Between 1 to 2 other persons besides yourself. None 12. Your current job/career/business is not dependable. is secure. doesn’t matter because you expect a large inheritance/have enough wealth already. None 13. After you have made an investment, your feeling on the decision is sorry. doubtful. satisfied. excited. None 14. What is your approach to making a financial decision? Take a random decision Seek friendly advice Take an educated guess Analyse the various options None 15. You have invested in Mutual Funds that you expect will give good returns in 5-7 years. Their prices (NAV) drop 20% soon after you buy them. You redeem (sell). wait and watch. average your cost by buying more. None Time’s up
