Investment Risk Analyzer
Most risk quizzes just ask how you feel about risk. This asks that, then checks it against what your real finances can actually absorb — and gives you the more conservative of the two, explained.
When will you actually need this money?
How this is computed
Willingness is a weighted score across 8 questions. How you'd react to a real 20% drop and when you'll need the money count for more than, say, your investing experience. The answers are combined into a score from 0 to 100.
Capacity reuses the same rubric behind your financial health score: savings rate, emergency fund coverage, debt-to-income and net worth. The final profile takes the lower of the two, because being willing to take a loss doesn't help if your finances can't actually absorb one.
This is a planning model, not personalized investment advice. Consult a SEBI-registered investment adviser before acting on it.
Why two scores instead of one
Most online risk quizzes ask only how you feel about risk. That misses half the picture. Take two people who both say they would buy more if the market fell 20%. The first has six months of expenses saved and no loans. The second has no emergency fund and an EMI that takes 45% of their salary. On paper they have the same appetite for risk, but only the first can sit through a crash without being forced to sell.
Financial planners call these two sides risk tolerance (or willingness) and risk capacity. This tool scores them separately and tells you when they disagree, so you can see whether your comfort with risk or your finances are the real limit.
The five risk profiles
Your final score places you in one of five profiles. Each comes with an illustrative model allocation across equity, debt, gold and cash, and the illustrative long-run return range this tool assumes for that mix. Returns are never guaranteed, and higher-equity mixes can fall much further in a bad year.
| Profile | Equity | Debt / Bonds | Gold | Cash | Illustrative return |
|---|---|---|---|---|---|
| Conservative | 20% | 60% | 10% | 10% | 6–8% |
| Moderate | 40% | 45% | 10% | 5% | 8–10% |
| Balanced | 60% | 30% | 7% | 3% | 10–12% |
| Growth | 75% | 18% | 5% | 2% | 12–14% |
| Aggressive | 90% | 5% | 3% | 2% | 13–16% |
How to use your result
Treat the profile as a starting point for a conversation, not an order. Compare the model allocation with what you hold today across mutual funds, stocks, PPF, EPF, FDs and gold. If your real mix carries far more equity than your profile, a market fall could hurt more than you expect. If it carries far less, you may be giving up growth you can afford.
If your capacity score is the one holding you back, the fix is usually not a riskier portfolio but a stronger base: build an emergency fund with the emergency fund calculator or clear expensive debt with the debt payoff planner, then retake the profile.
Your capacity score is the same one the financial health checkup calculates, so that's where to see exactly which part is holding it back. If people depend on your income, check you're covered before taking more risk: the insurance need verdict works out how much life cover you need. And to see what a long-term, equity-heavy portfolio can grow into, read how much to invest to become a millionaire.
Common questions
Willingness is how much volatility you are comfortable with: how you would react to a fall, how long you can wait, how much uncertainty you can live with. Capacity is how much volatility your finances can actually absorb, based on your savings rate, emergency fund, debt and net worth. They often disagree, which is why this tool measures both.