Financial Risk Score – How much risk can you tolerate? Post author:Jeysivaa Post published:May 2, 2020 Post category:Personal Finance Post comments:0 Comments Financial Risk Score Evaluation This Quiz helps the Investors/Readers to assess their risk appetite in the Volatile markets. This tool gives you a fair idea about your investment tolerance limit. 1. How old are you? Under 30 30 to 40 40 to 50 above 50 2. What is the nature of your Income? Self-employed with regular cash flow Salaried employee in an established firm Self-employed with irregular cash flow Start Salaried employee 3. How much is the Income to Loan Ratio ? 25-50 % Greater than 50% 10 to 25 % 0 to 10% 4. When will start redeeming your Investments? Not for another 10 years Within next 3 years In 3-7 years In 8-10 years 5. What will you do if during the market correction ? Say 30% down in your portfolio ! Sell the investment so you will not have to worry about further decline Buy more of the same, because it looks even better at current prices than when you bought it Hold on to it and wait for it to bounce back Aggresively Accumulate more to average down the portfolio 6. If the market downturn continues, how long will you hold on to your portfolio before selling off the investment? Another 6 months At least a year A month Another 3 months 7. How will you invest your Surplus cash ? Wait for market to recover 20% before investing I don’t Invest in stock markets ! Deploy some money in a staggered manner even if markets dip further I don’t mind putting in large chunk of the surplus right away! 8. Which outcome is most acceptable to you ? (best-case and worst-case annual returns) Hypothetical Investment Returns Option Best-case annual returns Year End Balance A 10% –5% B 20% -15% C 30% -20% D 40% -30% A B C D Loading … Question 1 of 8 Share with your friends if you like You Might Also Like Investing thumb rules – How many are you aware of ? April 27, 2020 15x15x15 rule in Investing – Success Way to Crorepati ! April 20, 2020 Emergency Fund or Rainy day Fund for Expats January 13, 2020 Leave a Reply Cancel replyCommentEnter your name or username to comment Enter your email address to comment Enter your website URL (optional) Save my name, email, and website in this browser for the next time I comment.