What is risk profiling?
Investing is an exciting way to grow your wealth, but it comes with its own set of challenges and uncertainties. These risks can vary and are unique to every investor, depending on their risk tolerance level.
To help them navigate these challenges, risk profiling has become an essential assessment required before you start investing. It takes into account various factors, such as an investor’s financial situation, objectives, and preferences when assessing their risk tolerance and appetite.
This vital step in the investment process enables investors to make informed decisions and protect their portfolio from unnecessary risks that could have detrimental consequences.
Risk profiling also helps financial advisors better understand their clients and serves as a basis for their tailored advice. When financial professionals have a deep understanding of their client’s risk tolerance, they can curate a strategy that aligns with their investment goals and objectives. This personalization enhances the probability of success for a client’s investment plan.
Regularly reviewing your risk profile is critical, as your risk tolerance may change due to evolving personal circumstances or market fluctuations. It’s important to adjust your investment strategy accordingly and seek guidance from your financial advisor whenever making material changes.
Presenting RiPro - A SaaS software for financial practitioners to conduct effective risk profiling for their clients
RiPro is a light-weight SaaS software to allow practitioners in personal finance and investments create customised risk profile questionnaires for assessing client’s risk perception.