Risk profile and asset allocation: the reading list

A risk profile weighs how much loss you can afford, your capacity, against how much you can sit through, your tolerance, and turns the answer into an equity and debt mix. This page lists the RupeeCase questionnaire, the allocation module and guide, the calculators and the strategy tiers grouped by risk.

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1Guides

Long form answers with worked Indian examples.

Guide, 9 minHow much equity should you hold at your age? The rule of thumb, and what to use insteadThe 100 minus age rule, and four equity and debt mixes tested on NSE data since 2015.

2Learn modules

Free lessons with a quiz and a certificate.

2Calculators

Put your own numbers on the idea.

1Terminal tutorials

Where the figure sits in the app, in a short video.

Tutorial, 0:45 videoThe riskometer: what sets Low to Very High?The six step riskometer on each strategy, from Low to Very High, and the score the server adds up to set it.

2Strategies and records

Model strategies built on the idea, with their published record.

2Glossary terms

The words, in plain language.

Riskometer: A six step scale that places a strategy from Low through Low to Moderate, Moderate, Moderately High and High to Very High risk.
Tier: A grouping of strategies by the role they could play in a portfolio: a core holding that carries most of the money, or a smaller satellite around it.

Search every RupeeCase page for risk profile

Questions about risk profile

What is a risk profile?

A measure of how much investment risk fits a person, from their finances, goals, time horizon and reaction to losses. SEBI requires advisers to assess it before advice.

What is the difference between risk capacity and risk tolerance?

Capacity is how much loss your finances can absorb; tolerance is how much you can sit through without changing course. A profile looks at both.

What is the riskometer?

A six level label, from Low to Very High, that SEBI requires on mutual funds. The app shows a similar label on each strategy; the tutorial explains how it is set.

How does equity allocation change with age?

Rules of thumb such as 100 minus age are a start; the guide covers goals, other assets such as EPF and a glide path instead of one formula.

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