Suitability Assessment
The Suitability Assessment is defined in a manner that, it meets the Investor investment objectives. The Investor is able to bear any related investment risks consistent with its investment objectives and risk tolerance. Also the Investor has the necessary experience and knowledge to understand the risks involved in the transaction.
Suitability Report Contents
Meaning and relevance of Risk and associated Reward
Risk Profiling Procedure and client classification
Your Risk Assessment and Selected Product
Risk and reward of selected product.
Meaning and relevance of risk and associated rewards
Risk is usually understood as “exposure to a danger or hazard”. In investment decisions, risk is defined as the possibility that what is actually earned as return could be different from what is expected to be earned. But if equity markets decline during that period, the investor could end up with negative returns instead. This deviation between actual and expected returns is the risk in his investment. Understanding the risk will help an investor decide the impact it will have on their financial situation and how to deal with it. The risk that an individual will be willing to take on investment has a huge bearing on how he/she should invest and selection of products.
Risk and Reward for Selected Product
As already stated investment is subject to market risk but the degree of risk varies, any investment in cash or equity-based service is a moderate risk where the chances of capital loss exist but generally, entire capital is not lost unless the highly leveraged position is entered by the client. While products like derivatives and commodities have a higher degree of risk where the entire capital may be lost
Risk Based Classification of the Services:
| S.NO | Medium | High |
|---|---|---|
| 1. | Alpha | Vega Pro |
| 2. | Vega | Beta |
| 3. | Vega Index | Vega BTST |
| 4. | Alpha Pro | – |
| 5. | Ace Pro | – |
Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.