Client Risk Profile for: Sanket ««(client name)

Important Investing Information to Consider Before Subscribing With Epic Research

This booklet will help us understand your tolerance to risk and determine an appropriate risk profile. By asking certain
questions, we will identify you as one of the following investor types:
• Defensive
• Moderately Defensive
• Balanced
• Growth
• High Growth
Understanding, identifying and agreeing on your risk profile is a critical step in designing the right investing strategy
to meet your goals and objectives while taking into account your tolerance to risk.
Risks Associated with Investing
There are various risks associated with all investments. These include: inflation, volatility and market risk, specific
risk and legislative risk.
Inflation Risk
The real purchasing power of your money may not keep pace with inflation. Inflation is an important
consideration for all investors. If the after tax return on your investments is less than the rate of inflation, then the
buying power of your money will decline.
Volatility and Market Risk
Movements in the market mean that the value of your investment can go down as well as up, sometimes suddenly
(volatility). Different types of investments experience different levels of volatility. Volatility becomes a problem if
you do not have the timeframe to withstand the rough patches.
Specific Risk
Specific risk refers to those risks related to a specific company. For example, a fall in the profit performance of a
company may impact adversely on its share price. This in turn, is likely to affect the value of its securities.
Legislative Risk
Your investment strategy could be affected by changes in the current laws and regulations.

What is the Relationship between Risk and Return?

Risk and return are positively correlated. In real terms this means, the higher the risk associated with an investment,
the higher the expected return and vice versa. This relationship is called the “Risk vs. Return ratio” (see chart below)
and is a factor that is taken into consideration in defining your tolerance to risk. Investments such as shares may offer
higher returns over the longer term, but there is a greater inherent risk. In contrast, cash and fixed interest investments
are considered to be less risky, but offer lower returns.
The relationship between risk and return in different asset classes is illustrated in this graph.

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Managing Risk in Investing
Diversification
The most widely recognized method for managing portfolio risk is through diversification of investments and
investment management. In order to minimize the volatility and risk of your investment portfolio, it is prudent to
ensure that it is sufficiently diversified against overexposure to a single asset, asset sector, geographical region or
investment manager. This is because no one asset, asset class, geographical region or investment manager provides the
best performance over all time periods. A range of investments should reduce the risk of the portfolio experiencing
drops in performance across the board simultaneously, as one asset class or manager may perform well to counter the
poor performance of another.
Asset Allocations:
1. Capital Market-Derivative Segment 5. Initial Public Offerings
2. Mutual Funds 6. MCX - Derivative Segment
3. Insurance Products 7. NCDEX - Derivative Segment
4. Fixed Deposits 8. Forex Segment
9. Retail Government Securities 10. Exchange Traded Funds
Risk Profile Questionnaire
Personal Details
Name Date of Birth Address

Sanket 1998-04-24

1. Which of the following do you think best describes you? Select Score
a. Your primary concern is to protect your capital and you can accept no 1
capital losses. You are not prepared to take any investing risk and you require access to
your capital in the near future.
b. Generating a regular income stream is a priority over capital growth. As a result, you 2
are prepared to sacrifice higher returns in favor of preservation of capital.
c. You require your investments to be a balance between capital growth and less 3
risk prone investing. Calculated risks will be acceptable as you are prepared to
accept short term levels of volatility in order to outperform inflation.
d. Your investing pattern should have a bias towards capital growth and you have less 4
need for recurring returns at this stage. You are prepared to accept a higher degree of
volatility and risk. Your primary concern is to accumulate assets over the longer term.
e. Your primary focus is on capital growth. You are prepared to accept a high level of 5
short term volatility and possible capital losses in order to generate potentially higher
levels of capital growth over the long term. You are well placed to recover from
unforeseen market downturns either because you have time on your side or access to
capital reserves.
2. How much money have you have allocated for various investing horizons Amount
a. Intraday Trading b/w 100000-200000
b. STBT,BTST Investing 0
c. Positional investing (3-15 Days) 0
3. How familiar are you with Capital & Commodities markets? Select Score
a. I am experienced with all sectors and understand the various factors which 4
Influence portfolio performance.
b. I understand that markets fluctuate and that different market sectors offer 3
different income, growth and taxation characteristics.
c. I have just enough experience to understand some aspects of capital 2
and commodity markets.
d. I have very little understanding or interest. 1
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4. How would you describe your experience with investing in markets? Select Score
a. I have had positive experiences with investing that outweigh the negative. 3
b. I am not familiar with investing and am cautious. 2
c. I have previously lost money as an investor and am very cautious about investing. 1
5. You inherit Rs.100, 0000 and wish to invest with the funds for the future. Which of the mixes
would you choose to invest in? Investment A has an average return of 30% but the possibility of losing
upto 40% in any year. Investment B has an average return of 20% with minimal losses in any year.
Investment Score
Best Case Return Worst Case Return Select
Option
a. 10% 0% 1
b. 25% -10% 2
c. 40% -20% 3
d. 60% -35% 4
6.What best describes how you feel after you have made a decision which will
Select Score
affect your financial future?
a. Very Confident 5
b. Confident 4
c. Neutral 3
d. Concerned 2
e. Scared 1
7. If a funding surplus is clearly identified and your stated goals and objectives
Select Score
have been met, which of the following strategies would you prefer to adopt?
a. Invest surplus income 4
b. Revise expectations / increase expenses 3
c. Reduce the investing risk in your portfolio 2
d. Other 1

8. How many years of investment experience do you have? Select Score

a. 0 years 0
b. 1-3 years 1
c. 4-6 years 2
d. 7-10 years 3
e. >10 years 4
f. NIL NIL
9. Gross Annual Income: Select Score

a.Below 1 lakh 1

b. 1-5 lakh 2

c. 5-10 lakh 3

d. 10-25 lakh 4

e. Above 25 lakh 5

f. NIL NIL

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10. How do you rate your willingness to take financial risks (risk appetite) ? Select Score

a) Very low risk taker 1

b) Low risk taker 2

c) Average risk taker 3

d) High risk taker 4

e) Very high risk taker 5

f) NIL NIL

IMPORTANT:- This section is to be completed by you and your Epic representative. Based on the scores
from the above Risk Profiling questions,you have fallen within the following risk profile category:

Your Risk Profile as ascertained by Epic: 20

Risk Profile Description

You are a High Growth Investor. You are prepared to take higher risks for potentially greater
High Growth returns. Overall you have a greater need for capital growth than for income.You are well placed to
Investor recover from unforeseen market downturns either because you have time on your side or access to
capital reserves.

You are a Growth Investor.Your investment portfolio should have a bias toward capital growth
Growth Investor and you have little need for income.You are prepared to accept a higher degree of volatility and
risk.Your primary concern is to accumulate assets over the medium term.

You are a Balanced Investor.Your investment portfolio should have a focus on capital growth
Balanced with some need for income.Calculated risks will be acceptable to achieve better returns.
Investor
You are a Moderately Defensive Investor. Typically, you are an investor seeking to
Moderately
Protect the wealth you have already accumulated. Your investment portfolio should
Defensive
Investor be structured more towards income producing assets rather than assets offering capital
growth.However some growth is expected to keep you ahead of inflation.
You are a Defensive Investor. Your investment portfolio should be biased towards security of
Defensive capital. A regular income stream is a priority over capital growth. Investments typically have a
Investor higher liquidity .

Risk Profile Acknowledgement

I agree with the category assigned above and understand that this profile will be considered in the investment
process.

Risk Profile Recommendation

As your representative, I propose a variation from the risk profile that the questionnaire placed you in. I
recommend we adopt the following risk profile for the reasons mentioned below.

High Growth Growth Balanced Moderately Defensive Defensive

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Client response to Recommended Risk Profile
I agree with the proposed variation to the risk profile(s).
I do not agree with the original risk profile category or your proposed variation to the risk profile(s) and
request to be placed in following risk profile for the reasons mentioned below.

(If you don’t agree please specify below one):

High Growth Growth Balanced Moderately Defensive Defensive
Reason for requesting a change in risk profile

Client Risk Profile Acknowledgment

I confirm that the details recorded in the Client Risk Profile questionnaire are correct and are a true
reflection of my attitude towards risk.

I confirm that I have read and understood my agreed risk profile, and additionally I understand that this
profile will be considered in the investment process.

Client signature
Full Name *Signature Date
Sanket 2018-11-29
* Or client email approval in lieu of physical signature.

Epic Representative Declaration:

The information recorded in this Client Risk Profile Questionnaire was / /
provided during a discussion held on
Authorized Representative’s Signature

Authorized Representative’s Number

Between 42-35 High risk and High Growth investor

Between 34-25 Growth

Between 24-17 Balanced

Between 16-10 Moderately Defensive

Between 0-10 Defensive

Disclaimer : The information received by subscribers is for their personal use. Investing involves a great deal of risk, including the loss
of all or a portion of your investment, as well as emotional distress. Nothing contained herein should be construed as a warranty and
guarantee of investment results. All risks, losses and costs associated with investing, including total loss of principal, are your
responsibility.
For more details please visit the link : http://www.epicresearch.co/disclaimer

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