Risk Profile Quiz

Your risk profile determines the right asset allocation for your investment portfolio. An investor who is 'conservative' should hold more debt and liquid assets for stability, while a 'very aggressive' investor can hold 80–90% equity for maximum long-term growth. Most investors never formally assess their risk profile — they pick funds based on friend recommendations or recent performance, leading to portfolios misaligned with their actual risk tolerance. This 8-question quiz covers: investment horizon, income stability, reaction to losses, investment experience, savings rate, volatility comfort, financial goals, and emergency fund status.

Risk Score = Σ (Question Score) / (Max Possible Score) × 100

Conservative: 0–35 → 20% equity, 60% debt, 10% gold, 10% liquid
Moderate: 35–55 → 50% equity, 35% debt, 10% gold, 5% liquid
Aggressive: 55–75 → 75% equity, 15% debt, 5% gold, 5% liquid
Very Aggressive: 75+ → 90% equity, 5% debt, 5% gold

Risk Profile

A categorisation of an investor's willingness and ability to tolerate investment risk, based on financial situation, goals, time horizon, and emotional response to losses.

Asset Allocation

The distribution of an investment portfolio across different asset classes (equity, debt, gold, cash) to balance risk and return based on the investor's risk profile.

Risk Capacity

An investor's financial ability to absorb losses — separate from risk tolerance (emotional comfort with losses). High income and long horizon = high risk capacity.

Risk Tolerance

An investor's emotional and psychological comfort with investment losses and volatility. Different from risk capacity — even wealthy investors may have low tolerance.