Risk Profiling & Financial Planning
Risk Profiling & Financial Planning Mr. Gurmeet and Mr. Rajesh are both working professionals. Gurmeet is a 28-year-old young individual and Mr. Rajesh is in his early 40’s. Do they have the same risk profile? The answer is NO. Let’s take another example, suppose both are of the same age with one being a salaried employee and other a businessman, again the same question “Do they have the same risk profile?” The answer will still remain the same “NO “. Why? Risk profiling before any investment is an immensely critical part. Many of us fail in assessing the risks involved with individuals and investment. A 28-year-old salaried professional will have different risk profiles compared to a 42-year-old salaried professional. Similarly, 28-year-old a businessman will have different risk profiles compared to a 28-year-old salaried professional. Their life’s financial goals are different, their risk appetite is different. In today’s world, each individual has its