F1- Risk Profiling Questions

The following are the unique set of questions compiled from the questions shared by students of F1
for risk profiling of customers.

Please note that the questions do not follow any order or precedence. You all are free to choose
any top 15-20 questions and put them in a systematic flow for the purpose of surveying 5 people for
the SAPM class activity.

Q1. Which age group do you belong to?

 Below 18
 18-25
 26-35
 More than 35

Q2. What is your marital status?

 Married
 Unmarried

Q3. Which of the following best describes your current stage of life?

 Single with a few financial burdens. Ready to accumulate wealth for future short term and
long-term goals
 A couple without children. Preparing for the future by establishing a home. Expecting to have
or already have a high purchase rate of household and consumer items
 Young family with a home. You have a mortgage and childcare costs and maintain only small
cash balances
 Mature family. You are in your peak earning years and your mortgage is under control. You
both work and you may or may not have children that are growing up or have left home
You’re ready to start thinking about your retirement years.
 Preparing for retirement. You own your home and have few financial burdens; you want to
ensure you can afford a comfortable retirement
 Retired. You rely on existing funds and investments to maintain your lifestyle in retirement.
You may already be receiving a Government pension and/or Superannuation pension.

Q4. What is your annual income?

 Below 250000
 250000-500000
 500000-1000000
 More than 1000000

Q5. How many dependants do you have?

 1
 2
 3
 More than 3
Q6. Expenditure

 50-60% of Income
 60-65% of Income
 65-70% of Income
 > 70% of Income

Q7. How would you describe your present income?

 More than sufficient to cover my living expenses (I am able to serve a certain amount every
year)
 Sufficient to cover my living expenses (I am not able to accumulate my savings)
 Not sufficient to cover my living expenses (I need to supplement my income with returns on
my investments)

Q8. Financial Stability

 Certain (Govt. Job, Long Term Business)

 Stable (Stable business with growth)
 Somewhat Stable (Pvt. Job)
 Uncertain (Temporary/Freelancing jobs)

Q9. Liabilities

 Have loans
 Recently paid off loans
 Intend to take loans in future
 No loans

Q10. What are your financial goals?

 Buying a house
 Start a business
 Save for children’s higher education
 Saving for daughter’s marriage
 World Tour
 Financial Security
 Plenty savings for investment

Q11. What is your expected rate of return?

 Less than 10%

 10-15%
 15-20%
 > than 20%

Q12. Have you ever invested in the past?

 Yes
 No
Q13. If yes, how was your investment experience?

 Bad
 Normal
 Good
 Very good

Q14. What is your investing experience?

 None
 Moderate
 Limited
 Extensive

Q15. How well-versed in financial matters are you?

 Have no experience with investments and are intimidated by their complexity

 Have no experience with investments
 Reminds me of something I have heard before. I don’t totally comprehend everything,
especially the stock market
 Relatively well-known. I am aware of the different elements that affect investing performance
 Very familiar. I make investing decisions based on research and other investment information.
I am aware of the many influences on investment performance

Q16. What is your investment objective?

 Preserve Principal
 Income and Growth
 Aggressive Growth
 Income
 Growth

Q17. Indicate the response that you feel best describes your risk tolerance.

 Conservative - Accepting of lower returns for a higher degree of stability - Seeks principal
preservation and minimizing risk
 Moderately Conservative - Comfortable accepting a small degree of risk and volatility -
Accepting of lower returns in exchange for minimal losses
 Moderate - Accepting of modest risks to seek higher long-term returns - Accepting of short-
term losses of principal in exchange for long-term appreciation
 Moderately Aggressive - Willing to accept significant risk - May endure large losses in favour
of potentially higher long-term returns
 Aggressive - Willing to accept substantial risk - Maximizing long-term returns is more
important than protecting principal

Q18. How long would you invest the majority of your money before you think would need
access to it ?

 One year or less than

 Within 3-5 years
 Within 5-7 years
 More than 7 years
Q19. Today, how much do you rely on income from your investment accounts?

 Heavily
 Slightly
 Moderately
 Not at all

Q20. How often would you like to invest?

 Monthly
 Quarterly
 Yearly
 At-once

Q21. Would you do the following if your investment dropped by more than 7% in a short period
of time:

 Sell at the remaining investment

 Sell a portion of the remaining amount
 Hold your investments and sell nothing
 Invest more money. You are willing to put up with short-term losses in the hopes of long-term
gains.

Q22. Percentage of your household income goes into repaying your liabilities?

 > 50%
 50% to 30%
 30% to 20%
 Less than 20%
 I have no liabilities

Q23. What is your main purpose of investing?

 to protect capital
 to protect capital and earn regular income
 to grow capital
 to grow capital and earn regular income
 to build long term wealth

Q24. What is your current portfolio composition?

 mainly money market, short term funds, corporate/bank deposit, and bonds
 mainly debt market instrument, gold, and some portion in blue chip stocks
 a mix of debt instruments, blue chip/ aggressive stocks, capital protected and direct equity
 mainly aggressive stocks, high yield debt fund small and midcap stocks, and income funds)
private
 equity and real estate
 mostly speculative or high-risk investments (aggressive stocks, high risk funds, options, real
 estate, leveraged positions, etc)
Q25. What percentage of your investments would you like to keep for emergencies or
unforeseen events?

 more than 50%

 25-50%
 10-25%
 below 10%
 none of my investments

Q26. Which of the following best describes you as an investor?

 comfortable with investments that involve lower risk and generate lower but consistent return
 year to year
 willing to ignore minor fluctuation in portfolio but prefer to be invested in less risky investments
 I would like to have moderate capital growth over a long period with short term fluctuation but
 averse to take high risks
 looking for substantial investment returns, willing to accept occasional short-term declines
 targeting high investment return, willing to accept high risks including loss of capital

Q27. Assuming an inflation rate of 4-6% p.a. over a medium to long-term horizon, what is your

return expectation?

 inflation rate plus 2-4 % PA

 inflation rate plus 5-7 % PA
 inflation rate plus 8-10 % PA
 inflation rate plus 11-15 % PA
 more than 15% PA over inflation rate

Q28. In what form do you prefer investing in gold?

 Physical gold
 Digital gold

Q29. What is your federal income tax bracket?

 5%
 20%
 30%
 30% & surcharge

Q30. Over the next few years, you expect the annual income to:

 Stay the same

 Grow moderately
 Grow substantially
 Decrease moderately
 Decrease substantially

Q31. What is your liquid net worth? (assets that can be readily converted to cash)

 Under 25000
 25000 - 60000
  60000 – 1 lakhs
 > 1 lakhs

Q32. Assuming that you want to invest in stocks, which one would you choose?

 Companies with significant technological advancement but selling their stocks at a

 low price
 Established well-known companies that have a potentially high rate of growth.
 “Blue chip” stocks that pay the dividend
 Other (Please specify)

Q33. Which of the following statements best describes your investment philosophy?

 I feel comfortable with stable investments

 I am willing to withstand some fluctuations in my investment
 I am seeking substantial investment returns
 I am seeking potentially high investment returns

Q34. What is the main reason for you investing in the financial market?

 I have to rely on my investments to supplement my cash flow

 I have to rely on my investments to supplement my future income
 (such as pension)
 I want to save for any future unexpected expense
 I want to grow my capital by using less volatile investment tool
 I want to grow my capital by using aggressive investments tool

Q35. How would a sharp drop in your investments affect you?

 It would personally affect me very much

 I would be disappointed
 It would be disappointed, but do recognize that this is always possible
 It would not affect me

Q36. Investments carrying a higher risk come with bigger chance of achieving higher returns,
but also a bigger chance of incurring substantial losses. Each investor has a different appetite
for risk. Which of the following return scenarios would be most comfortable to you? These
return scenarios are solely used for this risk profiling only, it must not be considered as the
expected return/loss of any investment product.

 Between a loss of 2% and a gain of 13%

 Between a loss of 12% and a gain of 28%
 Between a loss of 26% and a gain of 46%
 Between a loss of 50% and a gain of 100%

Q37. Would you consider borrowing money to make investments?

 Yes
 No
Q38. Where do you prefer to invest?

 Primary Market (like – IPO)

 Secondary Market (like – Stock Market)
 Money Market (like – Treasury Bills)

Q39. What is the minimum time period of investment that you prefer?

 Very short period of time (Daily investments)

 Short period of time (less than a year)
 Long period of time (more than a year
 Very long period of time (more than 5 years)

Q40. Which one of the following statements describes your feelings towards choosing an
investment?

 I would prefer investments with little or no fluctuation in value and have a low degree of risk
associated with them
 I prefer to diversify with a mix of investments that have an emphasis on low risk. But I am
happy to have a higher degree of risk in order to achieve a slightly higher return
 I prefer to have a spread of investments in a balanced portfolio
 I prefer to diversify my investments with an emphasis on more investments that have higher
returns, but still having a small amount of low risk investments
 I would select investments that have a higher degree of investment price fluctuation so that I
can earn higher long term returns

Q41. Select your preferred investment avenue.

(Select from 1 to 5. Where; 1=least preferred & 5=most preferred)

Investment 1 2 3 4 5
avenue
Bonds
Equity
Debt
Mutual Fund
Hedge Fund
Real Estate

Q42. Would you invest in a company which has underperformed in the past but may have
future prospects?

 Definitely not
 Maybe
 Not sure
 Definitely yes

Q43. In some instances, tax savings can be obtained from investments, but this means taking
on more risk. Which of the following statements best describes your goal for investing?

 Preferably guaranteed returns, before tax savings

 Stable, reliable returns, minimal tax savings
 Some variability in returns, some tax savings
 Moderate variability in returns, reasonable tax savings
 Unstable but potentially higher returns, maximise tax savings
Q44. In which sector would you like to invest your funds?

 Banking
 Information Technology
 Automobiles
 Pharmaceuticals
 FMCG
 Steel & Cement
 Any other

Q45. What do you consider the most important parameters while investing?

 Returns
 Lower Risk Factor
 Credit Rating
 Inflation
 Company
 Lock-in Period

Q46. Investments that go up and down in value in the short-term are more likely to produce
higher returns than investments that remain steady. Are you prepared to experience volatility
in your investments in order to increase the chance of higher returns?

 Yes, definitely
 Yes, for a significant part of my investment portfolio
 Yes, but only for some of my investment portfolio
 No, not at all

Q47. Once I begin withdrawing funds from my investments, I plan to spend all of the funds in:

 Less than 2 years

 2–5 years
 6–10 years
 11 years or more

Q48. What is your main purpose of investing?

 To protect Capital
 To protect Capital and earn regular income
 To grow Capital
 To build long term wealth

Q49. Divide your portion of money into these parts:

 Zero risk tolerance ₹_______ or ______ % of Net Income

 Moderate risk tolerance ₹_______ or ______ % of Net Income
 Aggressive risk tolerance ₹_______ or ______ % of Net Income

Q50. Which of the following statements make the most sense to you?

 I am willing to bear the consequences of a loss to maximize my returns.

 I am concerned about losses along with returns.
 To completely avoid losses is something I am more interested in