Risk Profiling and Suitability
Risk Profiling and Suitability
Sanriya Finvest Pvt. Ltd.
ARN-193359 | AMFI Registered Mutual Fund & Specialised Investment Fund (SIF) Distributor
Every investor completes a risk profiling assessment before investments are undertaken. The profile is determined from investment horizon, financial goals, income stability, prior investment experience and stated comfort with market volatility. It is reviewed periodically, and on any material change in the investor’s financial or personal circumstances.
1- Risk profile and indicative asset mix
| Score | Risk Profile | Investor Type | Equity | Debt |
| 0 – 25 | Low | Conservative Investor Portfolio | 25% | 75% |
| 26 – 50 | Low to Moderate | Balanced Investor Portfolio | 50% | 50% |
| 51 – 65 | Moderate to High | Moderate Aggressive Investor Portfolio | 65% | 35% |
| 66 – 80 | High | Aggressive Investor Portfolio | 75% | 25% |
| 81 – 100 | Very High | Very Aggressive Investor Portfolio | 90% | 10% |
Equity Investments include investments in Equity Mutual Funds, Shares, and Stocks, etc. Debt Investments include investments in Debt Mutual Funds, FDs, PPF, Gold, Bonds, Post Office MIS, NSS, Real Estate, etc.
These percentages are indicative starting points, not fixed formulas. The actual mix is adjusted for the investor’s goal horizon, liquidity needs, existing holdings and life stage.
2- Investment profile by investor type
| Investor Type | Investment Profile |
| Conservative | Objective: Current income Assets: Mostly fixed-income securities, some equities Risk: Low — not willing to tolerate investment loss Indicative short-term drawdown tolerance: 0–15% |
| Balanced | Objective: Balance of current income and capital appreciation Assets: Mix of equities and fixed-income securities Risk: Moderate — willing to tolerate some short-term price fluctuation Indicative short-term drawdown tolerance: 10–25% |
| Moderately Aggressive | Objective: Capital appreciation, secondary importance on current income Assets: Mix of equities and fixed-income securities Risk: Moderate — willing to tolerate short-term price fluctuation Indicative short-term drawdown tolerance: 15–35% |
| Aggressive | Objective: Long-term capital appreciation Assets: Mostly equities Risk: High — willing to tolerate large price fluctuations Indicative short-term drawdown tolerance: 15–45% |
| Very Aggressive | Objective: Maximum long-term capital appreciation Assets: Primarily equities Risk: High — willing to tolerate substantial price fluctuation Indicative short-term drawdown tolerance: 15–50% |
Please note: the drawdown ranges above are illustrative bands used to align expectations during profiling. They are not forecasts, limits or guarantees. Actual losses can be larger than the range shown, and no ceiling on loss is implied or offered.
3. Suitability alignment
- The risk profile is read together with the goal horizon – short (under 3 years), medium (3 to 5 years) or long (over 5 years) – and mapped to suitable scheme categories.
- For hybrid schemes, the underlying asset allocation must match the investor’s profile and time horizon.
- Where an investor wishes to proceed with a product outside the categories indicated by their assessed profile, the transaction is treated as execution-only, on the basis of the declaration described in Section 4 below.
4. Where your choice differs from your assessed profile
An investor is never prevented from investing in a product of their choice.
Where the product chosen does not match the assessed profile – for example, where the assessment places an investor in the Conservative category but the investor wishes to invest in equity-oriented schemes on a Very Aggressive basis – the investor records this directly on the Risk Profiling Questionnaire, by signing the declaration that appears at the end of that form.
The Risk Profiling Questionnaire carries three declarations, of which the investor signs any one:
Agreement with the assessed profile – the investor confirms the assessed profile is consistent with their requirements, that the concept of investment risk has been explained to them, and that they wish the profile to be applied to their funds available for investment.
Selection of a different profile – the investor records that the assessed profile is not consistent with their own requirements, nominates the profile they wish to be applied instead, and confirms they have full knowledge of the investments concerned. Transactions on this basis are execution-only, carried out on the investor’s own instruction.
Non-disclosure of complete financial information – the investor declares that they do not wish to disclose complete financial information, and acknowledges that the resulting profile may therefore not reflect their actual risk profile. Transactions on this basis are execution-only, carried out on the investor’s own instruction.
In each case the declaration is signed before any investment is executed, and is retained with the investor’s file.
5. Records
The completed questionnaire, the assessed profile and the signed declaration are retained as part of the investor’s file, and are available to the investor on request.
6. Important Information
Sanriya Finvest Pvt. Ltd. is an AMFI-registered Mutual Fund & Specialised Investment Fund (SIF) Distributor (ARN-193359) and an APMI-registered PMS Distributor (APRN-01056). We do provide incidental investment advisory / goal-based investment services. We do not charge any advisory fee. Risk profiling is carried out only to help identify product categories that suit an investor’s stated circumstances – the final investment decision rests with the investor.
Investments are not the same as bank deposits. They are not obligations of, and are not guaranteed or insured by, any government or insurance company unless expressly stated otherwise. The value of investments can rise or fall, and past performance does not indicate future results. No indicative or assured returns are offered.
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. All applications are subject to the terms and conditions of the respective products.
The investor types, risk profiles and asset allocations described on this page are illustrative. They are used to structure the profiling conversation and are not a guarantee of returns or protection against loss. No guarantee is given as to the accuracy or completeness of any suggestion arising from the profiling questionnaire.