Risk Assessment Tools

1. Your age is:

Under 30
30-40
41-50
51-60
60 or over
2. You have saved a long while to buy a car. A week before you buy the car, you lose your job. You.
postpone your purchase.
buy a new car but do not buy the expensive car you have saved for.
go ahead with your purchase plan and buy the expensive new car.
buy the car and go on a one week vacation to celebrate the new purchase.
3. Your current annual take-home income is:
under Rs100,000.
between Rs100,000 and Rs200,000.
between Rs200,000 and Rs400,000.
over Rs400,000.
4. You are financially responsible for (exclude dependants who can be supported by your
spouse's income)
only yourself.
1 other person in your household besides yourself
between 2 and 3 other persons besides youself
between 4 and 5 other persons besides youself
more than 5 other persons besides yourself
5. Your current job/career/business:
Is not dependable.
Is secure.
doesn't matter because you expect a large inheritance/have enough wealth already.
doesn't matter because you expect to change your career path soon.
6. After you have made an investment, your feeling on the decision is:
excited.
satisfied.
doubtful.
sorry.
7. You are offered a job by a company with a bright future. Which compensation option would
you choose?
A 3-year job guarantee.
An upfront bonus of Rs1,00,000.
A 10% pay increase on your salary of Rs4,00,000.
employee stock options with a current value of Rs1,00,000 & prospects for further appreciation.
8. What is your practice on saving money
I don't believe in saving.
 I'd like to save, but my expenses and other financial commitments do not permit me to.
I try to save whenever and wherever possible.
I save 15 percent or more of my take-home salary without exception.
9. You invest Rs1,00,000 in a share that goes down by 8% the next day. You.
average your cost by investing another Rs1,00,000 at a lower price.
do not bother because you had done enough research on the company.
book your loss and invest in fixed deposits or bonds.
hold on till the share comes back to your cost price and sell it.
10. Which of the following statements would best describe your level of knowledge as an investor
I don't understand investment terminology at all.
I am a proficient investor who's able to explain concepts such as EVA, beta and hedging.
I know how to identify and invest in mutual funds and secondary market debentures.
I understand investment principles and trade shares in the secondary market.
I am not very familiar with investment options and financial planning.
11. How would you `honestly' describe yourself as a risk-taker?
reckless
willing to take evaluated risks.
careful.
low risk taking capability.
extremely averse to risk.
12. Which would best describe your awareness about finance?
I read most of the business and investment magazines and watch business updates on television daily.
I read a financial newspaper daily and regularly read at least one specialized business magazine.
I read the finance section of the daily newspaper everyday.
I often look up the market prices of my shares in the newspaper.
I never read the finance section of the newspaper.
13. In how many years from now will you have saved up for all your future financial commitments
and needs?
less than 3 years.
3 to 6 years.
6 to 10 years.
more than 10 years.
14. What is your approach to making a financial decision?
take a random decision.
lose sleep over the issue
seek friendly advice.
take an educated guess.
analyse the various options.
15. When you suffer a financial loss, what are your feelings?
I think it has happened because it was my destiny.
I blame myself.
I take it as a personal failure.
I view it as a hurdle that one needs to cross.
 I almost never suffer losses, because I stick to investments that do not depreciate in principal value.
16. Your company has an attractive Voluntary Retirement Scheme(VRS) open only to 10% of
employees on a first-come-first-serve basis. You:
enrol for the scheme as early as possible.
enrol for it only if you had been looking for alternate opportunities and could take one of them.
do not take up the VRS, but start looking for other work as the company's future does not seem bright.
do not take the VRS because you intend to spend the rest of your working life in this company.
17. You have invested in shares that you expect will become 5-baggers in 2-3 years. These share
prices drop 30% soon after you buy them. You:
sell.
average your cost by buying more.
wait and watch.
see your cash flow at the end of the year and buy more if the prices of these shares are still low.
18. Excluding your house, your savings inclusive of employment benefits, add up to:
nothing.
less than six months' take home pay.
between 6-15 months' take home pay.
between 15-36 months' take home pay.
more than 36 months' take home pay.
19. What is the status of your accomodation? Those who own a house, choose from last two
options only.
I stay with my parents/ spouse.
I live in company accomodation.
I live in an apartment that I have rented.
I own a house but am saving to buy a better house.
I own as good a house that I would ever want to.
20. How would you describe your overall income status?
Just about manage to make ends meet; no monthly savings.
My PF and other employment benefits are my only source of savings.
I put aside atleast 10% of my take-home salary every month in savings.
I save more than 30% of my take-home salary every month.
My income from my wealth more than adequately provides for my cost of living.
Risk Attitudes Profiler

1. When starting a new undertaking you

are likely to doubt its success
weigh the pros and cons well beforehand and consult with experienced people
rely on luck and ignore possible failures
are confident of success and sure you will overcome any obstacles
need the guidance of an authoritative person
feel it is worth taking the risk as you will be able to extricate yourself, regardless
are sure that it will be of benefit to mankind
2. In your business/professional activities you
do not usually have competition
take competition into account and look for ways to prevent or reduce it
battle against your competitors
are prepared to fight against your competitors by any means necessary and are confident of your victory
are inclined to avoid competition
are keen on competitive struggle
feel ready to eliminate competitors for the common good
3. When driving a car you
always obey traffic laws and avoid dangerous situations
generally always obey traffic laws but if you break the laws you never enter into an argument with the police
react calmly when fined
are ready to break the laws if you don't expect to be fined
generally always obey traffic laws and drive carefully
often break the laws, exceed the speed limit while overtaking
try to obey the laws as far as they do not hinder your purposes but if otherwise you ignore the laws
4. When faced with the opinion of the majority
you’re usually in agreement with it
if it differs from your opinion, then you adhere to yours
if it differs from your opinion, you express it and retain your own views
if it differs from yours, it irritates you since you believe that your opinion is the only right one
if it differs from your opinion, you dare not uphold yours
it doesn't matter to you
you do your utmost to have it on your side, making all others change their mind
5. When pursuing your goal, you
never infringe the law
don't infringe the law explicitly but exploit its loopholes if necessary
sometimes infringe the law in minor matters, and think nothing of it
sometimes infringe the law if the risk of discovery is small
may infringe the law if you see a number of others doing so
are likely to violate the law if there is a chance of escaping detection
are ready to use almost any means since you think that a great aim justifies any means
6. If duels were permitted, you would
try to avoid them if possible, but if challenged, you wouldn't back out
avoid them at all costs
prefer to resolve conflicts in court
accept a challenge but would settle for reconciliation as well
prefer to resolve conflicts by duelling and not in court
always be determined to accept the challenge
ignore the challenge in order to not allow fate to defeat your purpose
7. In games of chance, you
don't play
if playing, gamble for low stakes
may play but never beyond the limit of your solvency
play for high stakes, sometimes beyond your solvency
generally don't play since you hate to lose
when playing, sometimes stake your all
don't play on principle
8. You have a preference for people who
you believe are trustworthy
are from your network, or someone you know
are competent
are determined and energetic
are committed to you and implicitly obedient
are courageous and fond of risks
believe in your ideas
9. In social settings you
join in with what's going on
talk to people who seem to be interesting
are the life and soul of the party
want to be respected and acknowledged as having the right side in arguments
listen to what is being said but do not have enough courage to join the conversation
often seek adventure
push your ideas
10. When making a decision, you
usually hesitate a great deal
decide after assessing the prospect of success
base your decision more on luck than on thorough reckoning
entertain no doubt about your rightness
tend to postpone it
decide impulsively, relying only on fate and luck
believe firmly in your rightness
11. The anticipation of forthcoming events, whether favorable or unfavorable
worries you but you hope for the best
makes you think over your actions after a bad turn of events
 puts you into pleasurable anticipation, leaving no room for the bad
makes you cautious, but you believe you will cope with any turn of events
makes you anxious, you expect the worst
excites you, stimulates your energy
mobilizes but doesn't scare you
12. In matters of dress you
dislike extravagant styles, and try not to stand out
prefer an elegant and "quiet" style
choose a striking or overtly casual style
choose quality, durable goods
dress like the others
choose a loud, sometimes eccentric style
are content with what you have, paying little attention to the latest fashion
13. As a rule, you enter into intimate relations
casually, without commitment or if you are prepared for marriage
with partners whose cultural, social and intellectual level is not lower than yours
if you are seized by strong feelings
with partners who recognize your superiority
with your soul mate
easily, not looking far ahead
when your partners are your companions in some mutual activity
14. When your rights are infringed, you
are likely to be reconciled to it
act the same way as the majority of people around you
will enter into fierce conflict
try to avoid such situations
assert your rights whatever the cost
will defend them
will uncompromisingly assert them for the sake of common justice
15. When it comes to conflicts, you
manage to avoid them
seldom find yourself involved but if so, act defensively
often get involved, through your own initiative
at times, unexpectedly find yourself involved but never stay involved for long
often get involved - those around you are to be blamed for that
try to settle it when you enter into one
you go in to crush the enemy
16. In life, you are most concerned about
your professional competence
stable income and job security
quickly moving forward in your endeavours
being successful in your endeavours
your prestige in society
 being pleased with yourself and your status
destiny of mankind
17. You prefer to be engaged in something that
gives you moral satisfaction first and foremost
improves your living standard
arouses keen excitement and passion in you
allows you to enjoy your life
enhances your prestige
allows you to live a purposeful life
is very important to the whole of mankind
18. Opponents
are the ones to whom you frequently give in
are the ones you avoid
are the ones you try to destroy
constantly get in your way
are the ones you enter into a fight with
activate you
are people with whom you can compromise if necessary
19. If you have a fairly prosperous life, you
are not prepared to risk your current assets while knowing you could have gained more
don't want to make any changes
direct your activity to improving the life of others
are ready to take risks for greater success
feel you could have gained more but were unlucky
sometimes change it drastically for no particular reason
are satisfied but work continuously to improve it
20. When you undertake actions
you are often not sure if they are right
you feel more confident when others approve of them
they are for everybody's good
you are sure of their rightness even if others regard them as wrong actions
the warnings of others strengthen your determination to go your own way
they sometimes involve risks, so as to test your abilities, courage and luck
you rely more on your own opinion than on the opinion of others
21. In routine life events
sometimes you want to stay completely alone
it's difficult to you to stay alone
you sometimes wish to go somewhere far away
you need radical changes in your everyday life
people sometimes irritate you
you crave strong excitement and thrills
you are continually engaged in some important task
22. When making investments you prefer to
put your money into no risk but relatively low interest, relatively long-term, programs
put your money into programs recommended by a financial advisor, with sound interest but low to medium risk
invest into what you believe will grow substantially within 1-2 years
invest in rapidly growing companies/markets. Sometimes you might also donate your money to a charity fund.
invest substantial sums of money in reputable enterprises or enterprises to which you give your personal
credence
put all of your assets in, if you feel it will yield quick and significant returns
invest in funds which are aimed at promoting the development of mankind and in which you can take part
Investor Questionnaire
1. I plan to begin taking money from my investments in . . .

1 year or less
1 – 2 years
3 – 5 years
6 – 10 years
11 – 15 years
More than 15 years

2. As I withdraw money from these investments, I plan to spend it over a period of . . .

2 years or less
3 – 5 years
6 – 10 years
11 – 15 years
More than 15 years

3. When making a long-term investment, I plan to keep the money invested for . . .

1 – 2 years
3 – 4 years
5 – 6 years
7 – 8 years
More than 8 years

4. From September 2008 through November 2008, stocks lost over 31%. If I owned a stock investment that lost about 31% in 3
months, I would: (If you owned stocks during this period, select the answer that corresponds to your actual behavior.)

Sell all of the remaining investment.

Sell a portion of the remaining investment.
Hold onto the investment and sell nothing.
Buy more of the investment.

5. Generally, I prefer investments with little or no fluctuation in value, and I'm willing to accept the lower return associated with
these investments.

Strongly disagree
Disagree
Somewhat agree
Agree
Strongly agree
6. During market declines, I tend to sell portions of my riskier assets and invest the money in safer assets.

Strongly disagree
Disagree
Somewhat agree
Agree
Strongly agree

7. I would invest in a mutual fund based solely on a brief conversation with a friend, co-worker, or relative.

Strongly disagree
Disagree
Somewhat agree
Agree
Strongly agree

8. From September 2008 through October 2008, bonds lost nearly 4%. If I owned a bond investment that lost almost 4% in 2
months, I would: (If you owned bonds during this period, select the answer that corresponds to your actual behavior.)

Sell all of the remaining investment.

Sell a portion of the remaining investment.
Hold onto the investment and sell nothing.
Buy more of the investment.

9. The chart below shows the greatest 1-year loss and the highest 1-year gain on 3 different hypothetical investments of $10,000.*
Given the potential gain or loss in any 1 year, I would invest my money in:

A (loss of $164, gain of $593)

B (loss of $1,020, gain of $1,921)

C (loss of $3,639, gain of $4,229)

*The maximum gain or loss on an investment is impossible to predict. The ranges shown in the chart are hypothetical and are designed solely to gauge an
investor's risk tolerance.

10. My current and future income sources (for example, salary, Social Security, pension) are:

Very unstable
Unstable
 Somewhat stable
Stable
Very stable

11. When it comes to investing in stock or bond mutual funds (or individual stocks or bonds), I would describe myself as . . .

Very inexperienced
Somewhat inexperienced
Somewhat experienced
Experienced
Very experienced

Your current asset allocation

Enter the current allocation in whole numbers for the savings used to answer question 10. Your percentages must total 100%..

Short-term reserves %

Bonds %

Stocks %