Every client's risk appetite is assessed using a standardised 10-question Risk Profiling Questionnaire (RPQ) before any recommendation. The profile determines which MF and SIF categories are suitable. Profiling is mandatory and completed before the first recommendation.
When Risk Profiling Is Done
| Trigger | Action |
|---|---|
| New client onboarding | RPQ before the first recommendation. No exceptions. |
| Annual reassessment | RPQ re-administered every 12 months at the review meeting. |
| Life-event change | Re-profile on marriage, child, job change, retirement, inheritance or major health event. |
| Client request | Re-profiling any time on request. |
| Significant market event | Proactive outreach to re-confirm risk comfort after a >20% correction. |
Risk Categories & Score Bands
| Score | Category | Description | Suitable MF Categories |
|---|---|---|---|
| 0–10 | Conservative | Low risk tolerance; capital preservation; short–medium horizon. | Liquid, Ultra Short, Low Duration, Money Market, Short Duration, Banking & PSU, Corporate Bond, Gilt |
| 11–20 | Moderate | Some risk for moderate growth; medium–long horizon. | Hybrid, Dynamic Asset Allocation, Multi Asset, Equity Savings, Large Cap, Index |
| 21–30 | Balanced | Comfortable with fluctuations; medium–long horizon. | Large & Mid Cap, Flexi Cap, Multi Cap, Focused, Value, ELSS, Aggressive Hybrid |
| 31–40 | Aggressive | High risk tolerance; long horizon; growth priority. | Mid Cap, Small Cap, Sectoral/Thematic, International, SIF schemes |
Acceptance & Records
The client reviews and signs a Risk Profile Acceptance Declaration. If they disagree, a re-discussion is held and the RPQ may be re-administered; the final accepted category is recorded. The RM may explain questions but must not influence answers. The signed RPQ, acceptance declaration and re-profiling history are filed and retained for regulatory purposes.