Risk Profiling, Suitability & Unsuitability Policy

Every investor serviced by us completes a risk profile before the first transaction is placed. Your answers are scored, the result is explained to you, and the completed profile is signed by you and preserved on our file. The profile is offered for review at least once every twelve months, and it is refreshed whenever you tell us of a material change in your financial or personal circumstances.

The profile is a written questionnaire covering your age, your investment experience, how you have behaved when markets have fallen, the fall in value you are able to bear, the stability of your income, the emergency funds and obligations you carry, the return you expect, the period for which you can stay invested, and your understanding of the markets.

• For this purpose, equity includes equity mutual funds, shares and stocks. Debt includes debt mutual funds, fixed deposits, Public Provident Fund, gold, bonds, Post Office Monthly Income Scheme, National Savings Scheme and real estate.
• These percentages are indicative starting points for discussion, not fixed formulas and not an assurance of any allocation, return or outcome. The actual mix is adjusted for your goal horizon, your liquidity needs, your existing holdings and your life stage.

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.

• The scheme categories presented to you are those that sit within the band of your recorded risk profile.
• The profile is read together with your goal horizon — short (under 3 years), medium (3 to 5 years) or long (over 5 years) — and mapped to suitable scheme categories.
• For a hybrid scheme, the underlying asset allocation must match your profile and your time horizon.
• The Riskometer level of a scheme is shown to you before you invest, together with the scheme's objective, its costs and the risks it carries.
• Where you are invested through a systematic plan, the suitability of the plan is revisited at the annual review along with the profile.

You are never prevented from investing in a product of your choice. Where your choice sits outside the categories indicated by your assessed profile, the transaction is carried out on your own instruction and is recorded in writing, at two points.

The Risk Profiling Questionnaire carries three declarations, of which you sign one. In each case the declaration is signed before any investment is executed and is retained on your file.

• Agreement with the assessed profile — you confirm that the assessed profile is consistent with your requirements, that the concept of investment risk has been explained to you, and that you wish the profile to be applied to your funds available for investment.
• Selection of a different profile — you record that the assessed profile is not consistent with your requirements, nominate the profile you wish to be applied instead, and confirm that you have full knowledge of the investments concerned. Transactions on this basis are carried out on your own instruction.
• Non-disclosure of complete financial information — you declare that you do not wish to disclose complete financial information, and acknowledge that the resulting profile may therefore not reflect your actual risk profile. Transactions on this basis are carried out on your own instruction.

• If you request a scheme that does not align with your recorded risk profile, we will inform you in writing.
• The written communication will specify the aspect of your risk profile that the scheme does not match and explain the associated risk.
• The transaction will be executed strictly on your own instruction.
• The communication and your confirmation will be retained in our records and made available for due diligence, wherever required.
• If you decline to complete or update your risk profile, the same will be documented, along with an explanation of the implications.

That fact is recorded on your file and the position is explained to you in writing.

The completed questionnaire, the assessed profile, the signed declaration and any unsuitability communication are retained as part of your file, and are available to you on request.

• Risk profiling is carried out only to help identify the product categories that suit your stated circumstances. The final investment decision rests with you. No guarantee is given as to the accuracy or completeness of any suggestion arising from the profiling questionnaire, and 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.
• 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.