Risk Profiling & Suitability Policy

1. Purpose

To make sure every recommendation matches the investor’s risk profile, goals and investment horizon, and that any investment beyond the investor’s risk category is made only with the investor’s informed, written acknowledgement.

2. Risk Profiling Process

Every investor completes a structured Risk Profiling Questionnaire before any scheme is recommended. The questionnaire covers age, income stability, investment horizon, investment knowledge, existing assets, liquidity needs and reaction to market falls. Responses are scored and the total score places the investor in a risk category from Conservative to Aggressive. The signed questionnaire and score sheet are kept in the investor’s file, and a copy is given to the investor on request.

3. Re-profiling

The risk profile is reviewed with the investor at least once a year, and earlier if the investor reports a significant change such as retirement, change of income, inheritance or a change in goals. If the category changes, existing holdings are re-checked against the new category.

4. Suitability Check

Before a scheme is recommended, its category and Riskometer level are checked against the investor’s risk category using the Suitability Matrix. A scheme whose risk level sits within the investor’s category is treated as suitable. The recommendation, and the fact that this check was done, are recorded.

5. Investments Beyond the Risk Category

If an investor wishes to invest in a scheme whose risk level is higher than the investor’s assessed risk category, the Distributor first informs the investor in writing that the scheme is not suitable for the assessed profile, and explains the additional risk. The investment is executed only after the investor signs an acknowledgement confirming that the unsuitability was explained and that the investor still wishes to proceed on the investor’s own decision. The written communication and the signed acknowledgement are kept in the investor’s file.

6. Records

Signed questionnaires, score sheets, suitability checks, unsuitability communications and acknowledgements are preserved and available for AMC and AMFI due-diligence review.