The investor questionnaire is an improvement over the oral submissions that the prospective investor makes before his broker or financial consultant. With the multiplicity of investment opportunities, a broker, when he has to give the correct advice to the investor about the disposition of his liquidity must have the clear picture about the investor's financial position and inclinations on the investment scenario. The information provided will enable the broker to determine the right asset allocation.



The number of questions that you have to answer, on a cursory glance, may seem too many, but each question from the broker's point of view is useful and essential. He has to take decisions about the manner in which your assets need to be deployed. Every investor comes to seek the services of the broker with the profit motive and he has high expectations in that area.

Once the broker tenders his advice on your investments based on the information about your investment objectives, risk tolerance and time horizon, take it that the action on your goals as stated in the questionnaire has begun. When your financial circumstances change, the goals will also change. You are always at liberty to submit a fresh questionnaire and suggest reallocation of investments in the portfolio.

An investor has to agree to the terms and conditions governing trades on the basis of information provided in the questionnaire. However, the investor is under no obligation to accept the suggestions given by the broker. Questionnaire, as such, does not add or delete anything special, and trading is done by the broker on behalf of the investor on the basis of normal trading principles, with no guarantee that the asset allocations done will meet your investment objectives. Every investment involves risks, the fluctuations in the market are uncertain, and there are many market factors to thwart your expected level of profits. Retake the questionnaire as and when you feel necessary. Its submission does not mean that you have to relax your vigil on the market trends that may cause decline in the value of your account.

Most of the questionnaires are so designed that the investment profile will enable the investor to determine their own decisions. It is both interactive and resourceful. Risk tolerance limits and time horizon, are taken proper care of. You will have the exact idea of building up and reviewing your portfolio. You will come know what type of personality you are as for your investment objectives.

Through the knowledge- bank provided through the questionnaire, you are able to balance your risk-return scenario. On the basis of that information, an investor profile is categorized as aggressive, moderate, conservative or any of its combination. ?This is the key to successful investing.?

"In true essence of investor profile questionnaire, it helps you in understanding your requirement and investment style. Lets you know if you are aggressive, moderate or conservative? If you can understand this, then you will know your investor profile or personality which includes asset allocation and diversification strategy. You can be assured of consistent good returns.?

When providing answers o the questionnaire, it is in the interest of the investor to give correct and complete information. By providing incomplete information you will render disservice to the investment plans that the broker will draft for your benefit. Wrong information may lead to problems that will be difficult for the broker to solve, once the correct picture is tendered before him by the investor, fearing losses.

If you wish to have any subsequent clarifications on your questionnaire, get it clarified from the Manager. Information provided by an employee, who does not have proper clue to your question, though unintentional, may land you in trouble. Know the official with whom you are interacting and it is desirable to deal with a particular official, instead of all and sundry in the office of the broker.

If you reveal the complete information and respect the rules of the investment business, you are likely to get what you expect from the stock market.