As per SECURITIES AND EXCHANGE BOARD OF INDIA (INVESTMENT ADVISERS) REGULATIONS, 2013 Investment adviser shall ensure that
All investments on which investment advice is provided is appropriate to the risk profile of the client;
It has a documented process for selecting investments based on client’s investment objectives and financial situation;
It understands the nature and risks of products or assets selected for clients;
It has a reasonable basis for believing that a recommendation or transaction entered into:
meets the client’s investment objectives;
Is such that the client is able to bear any related investment risks consistent with its investment objectives and risk tolerance;
Is such that the client has the necessary experience and knowledge to understand the risks involved in the transaction.
Process of Suitability Assessment for client:
Pursuant to the SEBI (INVESTMENT ADVISERS) REGULATIONS, 2013 guidelines with respect to Suitability Assessment Profit Plus Financial Services do proper risk profiling and risk assessment for each of our clients. As per risk analysis & client requirement we ensure that correct product/service as per client risk tolerance capacity is being offered which is suitable for client. Also, client subscribes for any of our services after evaluating our paid trial, understanding & being aware of the risk involved in Stock / Commodity market trading.
After assessing, being affirmative with the service suitability & being satisfied with the services offered client willingly subscribe for the service/services keeping in check their financial standing and assessing the capacity to absorb losses, whenever incurred.
To ensure that the advice offered to the client is suitable for the client we shall ensure that all investments on which investment advice is provided is appropriate to the risk profile of the client by categorizing client as low risk appetite, medium risk appetite and high risk appetite. A similar classification will be done for products/services after considering the risk and reward of the services offered and various SEBI guidelines in this regards. Client with Medium risk appetite is recommended to subscribe medium risk services only and client with high risk appetite is recommended to subscribe either medium or high risk services. We do not offer any low risk services.
Thus, it is ensured that advices which are being offered to clients are fully suitable.
| Sr. No. |
Type of Investor/Trader |
Score |
Definition Investor/Trader |
Risk Tolerance Capacity |
Suitable Services |
Characteristics of services |
| 1 |
Conservative (Low Risk Category Client) |
150-250 |
An investor who has low ability to accept risk. A conservative investor is someone who wants his money to grow but does not want to risk his principle investment. |
Low Risk |
Nil |
We don't offer any Low risk services. |
| 2 |
Moderate (Moderate Risk Category Client) |
255-750 |
An investor values reducing risks and enhancing returns equally. This investor is willing to accept short to long term fluctuation risks to seek higher returns & capital gain. A Moderate investor endures a short-term loss of principal and aware that capital may fall under original investment capital, during economy downturn. Group 1 / Moderate Risk Category services are offered. |
Medium Risk |
Group 1/ Moderate Risk Category Services |
Offer medium risk and reward services. Generally principal
Capital is exposed to risk but not 100% exposed to risk.
Mostly Intraday services are offered.
|
| 3 |
Aggressive (High Risk Category Client) |
Above 750 |
An investor who seek for “high risk high return” investment, able to accept short to long term fluctuation to earn very high returns. Services under Group 2 / High Risk Category Services are recommended however client may also opt for services under Group prednisone 1/ Moderate Risk Category Services. |
High Risk |
Group 2 / High Risk Category Services |
Offer high risk and high returns. Principal capital may be at
100% risk. Suitable only for experienced Investors, Willing
to take risk in market for high returns. Intraday/Btst-Stbt/
Holding based services are offered.
|
