Investment Suitability Profiling
A suitable investment is defined as one that is appropriate in terms of an investor's willingness and ability (personal circumstances) to take on a certain level of risk. Both of these criteria must be met. If an investment is to be suitable, it is not enough to state that an investor is risk-friendly To find out Suitable investment , Investment suitability study is must.
What :
Investment suitability profile is a system to decide particular investment product is suitable for a particular client or not.
Why :
Every investor has different risk taking capacity and willingness to take risks . There is no one product suitable to all investors because every investor has unique risk profile.
How :
Four Steps to Determine Your Investor Profile
Risk tolerance :
The most important element is your personal tolerance for risk.
Investment horizon :
The second element to consider is your investment horizon.
Investment Objective :
Wealth Preservation of Wealth Creation
Age :
Age is one of the factors to define the risk tolerance level.
Value Addition :
We have designed in house questionaries', the result of which give insight about client behaviour with respect to investment helps us to understand client ability to take risks and willingness to take risks and on the basis of this Suitability study , we decide client risk profiling and on the basis of client risk profile, suitable product suggested to him which give him smooth investment experience.