How we ensure every recommendation is suitable for the client's risk profile, goals and horizon — and how we handle requests that fall outside a client's assessed profile (the unsuitability and execution-only process).
Suitability Matrix
Each risk category maps to suitable MF categories by time horizon. Only schemes within the client's eligible cells may be recommended. This matrix is the backbone of our recommendation process.
| Risk Category | Short-Term (≤3 yrs) | Medium-Term (3–7 yrs) | Long-Term (7+ yrs) |
|---|---|---|---|
| Conservative | Liquid, Ultra Short, Low Duration, Money Market, Short Duration | Banking & PSU, Corporate Bond, Gilt, Conservative Hybrid | Gilt, Corporate Bond, Conservative Hybrid, Equity Savings |
| Moderate | Short Duration, Banking & PSU, Equity Savings | Balanced Advantage, Dynamic Asset Allocation, Large Cap, Index | Large Cap, Multi Asset, Flexi Cap, ELSS, Balanced Advantage |
| Balanced | Balanced Advantage, Dynamic Asset Allocation | Large & Mid Cap, Flexi Cap, Multi Cap, Aggressive Hybrid, ELSS | Large & Mid Cap, Flexi Cap, Multi Cap, Value, Focused, ELSS |
| Aggressive | Balanced Advantage, Flexi Cap | Mid Cap, Small Cap, Flexi Cap, Multi Cap, Sectoral/Thematic | Mid Cap, Small Cap, Sectoral/Thematic, International, SIF |
Suitability Check Before Every Recommendation
We confirm the risk profile is valid (within 12 months), check the scheme's Riskometer against the client's tolerance, verify it falls within the eligible Suitability-Matrix cells, and document the check. If suitable, we proceed; if not, we trigger the unsuitability process.
Unsuitability Process
- Inform the client — a written unsuitability communication stating the client's profile, the requested scheme and its Riskometer, why it is unsuitable, the specific risks, and that Shrey Wealth does not recommend it.
- Obtain written acknowledgement — the client confirms in writing they understand the risks and wish to proceed, accepting full responsibility.
- Execution-only consent — the transaction is tagged "Execution-Only" with a signed consent form stating it is at the client's own initiative and no advice was given.
- Process & document — processed on BSE STAR MF; all three documents filed; tagged execution-only in back-office.
Advisory vs Execution-Only
| Parameter | Advisory | Execution-Only |
|---|---|---|
| Who selects the scheme? | Shrey Wealth recommends per suitability | Client selects independently |
| Suitability Matrix applied? | Yes — must be in eligible cell | Not required (client's choice) |
| Unsuitability letter? | No (scheme is suitable) | Yes — if outside risk profile |
| Execution-Only consent? | Not required | Yes — mandatory |