Risk Profiling

Banks/ investment advisers have a practice of doing a “Risk Profile” of the prospective investor. A risk profile is an evaluation of an investor's attitude and ability to take risks. Risk profiling involves the assessment of investor psychological level with the volatility of capital markets. A risk profile is important to determine which asset should be allocated to an investor's portfolio.

A risk profiling involves the series of questionnaire and based on the answers assign a risk profile to the investor. The tolerance to risk is reflected in the “Asset Allocation” that the bank recommends to the investor. Aggressive investors who have high tolerance to equity usually have a high percentage of Equity in their allocation, conservative investors tend to have more of debt. The MF portfolio that the investor invests has to match his/ her asset allocation, which is based on risk profile.

Note: The risk profile questionnaire, recommended asset allocation will be fetched from mutual fund processor. OBDX will display the questionnaire, capture the answers and pass them on to the mutual fund processor. Further, the computation of risk profile based on user provided answers will happen at mutual fund processors and will be communicated to OBDX which will display it to the user.

Pre-Requisites

• Transaction access is provided to the Retail User.

Features Supported In Application

The module supports the following features:

• Risk Profile Assessment
• Edit Risk Profile

How to reach here:

Dashboard > Toggle Menu > Wealth Management > Start Investing > Risk Profiling > Risk Profile

To calculate risk profile of a user:

• From the Investment Account list, select the account from which user wants to purchase the funds.
• Click Know your risk Profile. The Risk Profile screen with set of questions appears.
  OR
  Click Back to Dashboard to go to the Dashboard screen.
  

Risk Profile - Questions

• In the Risk Profile - Questions list, select the appropriate answers.
• Click Next to continue. The Risk Profile screen with next set of questions appears.
  OR
  Click Back to Dashboard to go to the Dashboard screen.
  

Risk Profile - Questions

• In the Risk Profile - Questions list, select the appropriate answers.
• Click Next to continue. The Risk Profile screen with next set of questions appears.
  OR
  Click Previous to navigate to the previous screen.
  OR
  Click Back to Dashboard to go to the Dashboard screen.
  

• In the Risk Profile - Questions list, select the appropriate answers.
• Click Calculate Risk Profile. The Risk Profile screen displaying the attitude of the user in a graphical form and the recommended allocation appears.
  OR
  Click Previous to navigate to the previous screen.
  OR
  Click Back to Dashboard to go to the Dashboard screen.

• Click Agree, if you agree with the risk profile.
  OR
  Click Disagree, if you disagree with the risk profile. A pop up screen with options allowing the user to edit the risk profile or take the assessment again appears.
  OR
  Click Cancel to cancel the operation and navigate back to ‘Dashboard’.
  
• The Risk Profile Confirmation screen with success message appears. Click Ok to complete the transaction.
  OR
  OR
  Click Wealth Dashboard to go to the Wealth Management Dashboard screen.
  OR
  Click Back to Dashboard to go to the Dashboard screen.

Edit Risk Profile

The risk profile user wants to choose as an alternate to the one assigned to him after answering risk profile questionnaire. Could be same as the one assigned or different as the user chooses. This option allows the user to edit his risk profile, as evaluated by the application.

To edit the risk profile:

• In the Risk Profile - Assessment screen, click Disagree. A pop up screen with options allowing the user to edit the risk profile or take the assessment again appears.

• Select the Choose your risk profile type option. The Edit Risk Profile screen appears.

• From the Select your risk profile list, select your risk profile.
• Click Save.
  OR
  Click Cancel to cancel the operation and navigate back to ‘Dashboard’
  OR
  Click Back to navigate back to the previous screen.
• The success message of submitting the request appears.
  Click Ok to complete the transaction.

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