We are upgrading our transaction portal and will be back soon.
We have often heard the warning, “Mutual Fund Investments are subject to market risk’. In fact, all investments inherently carry some elements of risk. However, risk in itself is nothing to be feared about. Risk denotes an uncertainty in outcome. Fortunately, risk can be managed.
It is for this very reason, an investor must fully understand the concept of investment risk and individual risk profiling.In simple terms, investment risk is nothing but the uncertainty of how an investment would pan out. “Will I make money or will I lose money?”, is the question that often plagues investors. Investment risk measures the probability of making a loss. Risk is ubiquitous. It is present while crossing the road, travelling by train or in an investment.Just like we are advised to look before crossing the road it is important to assess investment risk, before making an investmentsome people like to sky dive, while there might be others who fret over taking a flight. Each individual has a different capacity and willingness to absorb risk, which can range from high to moderate to low.It is imperative that there is an alignment between an individual’s risk profile and the risk of the investment.
Risk profiling is a process which helps an individual understand and measure his ability and willingness to absorb risk, thereby enabling him to make optimal investment decisions.Risk assessment and profiling is integral to the investment process.Some of the key factors that can influence an individual’s risk profile are discussed below.
These include: 1) Ability to take risk, 2) Need to take risk, 3) Perception to risk, and 4) Willingness to take risk.While some of these factors are behavioural in nature and require psychometric tests, others can be arrived at using mathematical models.
Ability to take risk: an investors’ ability to take risk is basically his capacity to take risk at different points of time in his life. The ability to take risk can be strongly impacted by an individual’s current income, assets and liabilities. For example, a salaried employee with a stable job, a steady income and some assets like a house will have a higher ability to take risk compared to an individual who has an uncertain income flow and no assets.
Need to take risk: every individual has certain savings or income which help him meet his current expenses and future liabilities. At the same time, we all have financial goals that we aspire to achieve. . The need to take risk could depend on your goals and how your income and investments can help you achieve those goals.
Perception to risk: this is a behavioural factor that impacts an individuals’ ability to absorb risk. While ability and need can be quantified, perception to risk can vary not only between individuals, but also for a single person at different points of time. It basically hinges upon how an individual views risk and can be gauged with his reaction towards extreme market conditions.
Willingness to take risk: this is another behavioural factor that impacts an individuals’ ability to absorb risk. It is primarily the level of risk that he is willing to take i.e. he is comfortable taking. There can be a case where an individual might have a high ability and need to take risk. But he might intrinsically be risk averse and not be willing to take more risk.
A financial advisor can help you assess the above factors and arrive at an accurate risk profile. Once you know your risk profile then you can make more judicious investment decisions that can help you fulfil your goals and ensure that you are comfortable with your portfolio allocation.
It is mandatory for all mutual fund investors to undergo a one-time KYC (Know Your Customer) process. For more info on KYC specifically on: the procedure for completing KYC, for changing address details, for changing contact details.
For changing bank details, visit barodabnpparibasmf.in/investor-centre/information-on-kyc
For more info on submitting a complaint or a grievance, visit https://www.barodabnpparibasmf.in/contact-us
Further, investors should ensure that they transact ONLY with SEBI Registered Mutual Funds listed under Intermediaries/Market Infrastructure Institutions on the SEBI website https://www.sebi.gov.in/intermediaries.html
An Investor Awareness Initiative.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
**basis portfolio of the Scheme as on March 31, 2024
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
**Basis constituents of the scheme as on March 31, 2024
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
*The PRC matrix denotes the maximum risk that the respective Scheme can take i.e. maximum interest rate risk (measured by MD of the Scheme) and maximum credit risk (measured by CRV of the Scheme)
Before going in deep, Let us understand you little bit better. And we will provide proper guidince accordingly.
Yes, Let's start from basic No, I want to continueYou will need the following:
Start investing with your I-PIN and password
Start investing without
an I-PIN
You will need the following:
You have chosen
Select Option
Choose update frequency
Disclaimer:
1. NAV of the selected fund will be sent on the next working day. For example NAV of Monday will be sent on Tuesday.
2. At a time, you are allowed to subscribe to at most 3 schemes for daily/weekly/monthly updates.
3. For daily alerts, the NAV of the selected scheme will be sent the next morning.
4. For weekly alerts, the NAV of the selected option will be sent every Monday morning.
5. For monthly alerts, the NAV of the last applicable date of the month will be sent on the 1st of the subsequent month.
6. The weekend NAVs of Liquid schemes will be sent on the subsequent Monday.
7. Receipt of the SMS alert is subject to validity of the mobile number and availability of network. Baroda BNP Paribas is not liable in case of either of these two being insufficient.
