Faida Risk Assessment Form – Faida Investment Bank

Welcome to your Faida Risk Assessment Form

We would like you to take a few moments to fill out this risk assessment form. We desire to match your personal circumstances with the best investment opportunity.

Please answer all the questions below by ticking only ONE of the options for each question. Choose the option that BEST indicates how you feel about each question.

(Investment risk is the level of volatility or fluctuation that a person is prepared to accept in investment returns
– including the potential risk of loss of some capital in the short‐term, and the potential risk that retirement goals may not be met in the longer term. Volatility is the unpredictable upward and downward movements in investment values over a period of time.)

Name

Email

1.

What is your Investment horizon? How long can you keep your money invested in the market before needing access to it?

Deselect Answer

Up to two years

Two and three years

Three and five years

Five and ten years

Ten years and more

2.

The age group you belong to:

Deselect Answer

51 years & above

36 - 50 years

25 - 35 years

Less than 25 years

3.

How well do you understand investing in the markets?

Deselect Answer

I am a novice. I don’t understand the markets at all.

I have basic understanding of investing. I understand the risks and basic investment concepts like diversification.

I have an amateur interest in investing. I have invested earlier on my own. I understand how markets fluctuate and the pros and cons of different investment classes.

I am an experienced investor. I have invested in different markets and understand different investment strategies. I have my own investment philosophy.

4.

My current and future income sources (example: salary, business income, investment income etc) are:

Deselect Answer

Very unstable

Unstable

Somewhat stable

Stable

Very Stable

5.

From the following 5 possible investment scenario, please select the option which defines your investment objective?

Deselect Answer

I cannot consider any Loss

I can consider Loss of 4% if the possible Gains are of 10%

I can consider Loss of 8% if the possible Gains are of 22%

I can consider Loss of 14% if the possible Gains are of 30%

I can consider Loss of 25% if the possible Gains are of 50%

6.

If your investment outlook is long‐term (more than five years), how long will you hold on to a poorly performing portfolio before cashing in?

Deselect Answer

Not hold & cash in immediately if there is an erosion of my capital

I’d hold for 3 months

I’d hold for 6 months

I’d hold for one year

I’d hold for up to two years

I’d hold for more than two years.

7.

Volatile investments usually provide higher returns What is your desired balance?

Deselect Answer

Preferably guaranteed returns

Stable, reliable returns,

Some variability in returns,

Moderate variability in returns,

Unstable, but potentially higher returns,

8.

If a few months after investing, the value of your investments declines by 20%, what would you do?

Deselect Answer

Cut losses immediately and liquidate all investments. Capital preservation is paramount.

Cut your losses and transfer investments to safer asset classes.

You would be worried, but would give your investments a little more time.

You are ok with volatility and accept decline in portfolio value as a part of investing. You would keep your investments as they are.

You would add to your investments to bring the average buying price lower. You are confident about your investments and are not perturbed by notional losses.

9.

Which of these scenarios best describes your "risk range"? What level of losses and profits would be comfortable with

Deselect Answer

a)

b)

c)

d)

e)

f)