3.16.1 Investor Fund Risk Rating Mapping

This topic provides information on mapping investor fund risk rating screen details.

You can capture investor risk rating to fund risk rating mapping. This mapping will be done at an AMC level. The system will validate transactions wherever applicable based on this mapping to check if an investor can invest into a selected fund or not.

You can configure investor risk rating and fund risk rating in Parameter Setup screen where Param Value will be numeric ranging from 0-100 with 1 as the lowest risk rating and 100 as the highest risk rating.

If risk rating for an investor is 0 (Not Applicable), the validation for investor fund risk rating will not be applicable. Param Value 0 should not be used for any other risk rating maintenance.

Note:

You can configure Fund risk level and investor risk level at param maintenance for FUNDRISKPROFILE and INVRISKPROFILE param codes respectively. The system will validate the fund risk for an investor in Investor Fund Risk Rating Mapping screen.

The parameters for investor and fund risk ratings are as follows:

Investor Risk Rating

Table 3-36 Investor Risk Rating

Param Value	Description
0	Not Applicable
10	Low (Conservative)
20	Medium (Moderate)
30	High (Aggressive)

Fund Risk Rating

Table 3-37 Fund Risk Rating

Param Value	Description
10	Risk Level 1
20	Risk Level 2
30	Risk Level 3
40	Risk Level 4
50	Risk Level 5

You can add more risk rating levels to Investor Risk Rating and Fund Risk Rating parameter maintenance as required.

Example for Parameter maintenance:

Investor risk rating

Table 3-38 Investor Risk Rating

Param Value	Description
10	Low (Conservative)
20	Medium (Moderate)
30	High (Aggressive)

Fund Risk Rating

Table 3-39 Fund Risk Rating

Param Value	Description
10	Risk Level 1
20	Risk Level 2
30	Risk Level 3
40	Risk Level 4
50	Risk Level 5

Table 3-40 Mapping is done as follows:

Param Value	Description
10	Risk Level 1
20	Risk Level 2
30	Risk Level 3
40	Risk Level 4
50	Risk Level 5