Manage risks to ensure you follow Rule No. 1 of Investing ...Never lose money!

Your portfolio will have some
or all of these
7 Risks

CR

4. Market Cap Risk

While some smaller cap companies have potential of high returns, most come with high risks. Many have weak business models and are badly hit by economic or business downturns, and can erode your wealth!

AA

1. Asset Allocation Risk

Putting all or most of your investable surplus in the equity basket exposes you to high risk and putting too much in safe, fixed-income asset reduces your returns drastically.

BR

5. Business Risk

Companies with poor fundamentals and weak business models can not deliver consistent and sustainable profitable growth.

SR

2. Sector Exposure

Companies in the same sector are likely to be impacted by the same economic factors. Large exposure to a single sector, or correlated sectors, could result in a drastic fall in your portfolio market value.

VR

6. Valuation Risk

If over-priced stocks form a large portion of your portfolio, a price-correction will reduce your portfolio value substantially.

SE

3. Stock Exposure

A stock is exposed to several company-specific risks, (business, balance sheet, valuation or people risk.) A 20% drop in a stock comprising 20% of your portfolio reduces your absolute returns by 4%.

LR

7. Liquidity Risk

Low-trading Assets have very few buyers. So, one cannot sell it, when needed without compromising on prices.

...Some risks help you earn good risk-adjusted returns, manage them. Eliminate the rest!
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  • Risk Analysis is done on all your portfolios combined.

    step 1

  • The top part of the page shows key metrics.
    Check tooltips to know more.

    step 2

  • Your portfolio is analysed for 7 Risks. Here you can see details & actions for Sector Exposure. This portfolio is over-exposed to the BFSI sector. So, adding another Bank stock to this portfolio would be an incorrect decision.

    step 3

  • Here are the cards of BFSI stocks in this portfolio. A stock-card also shows other risks that a stock carries. To reduce the Stock exposure risk, some of these stocks need to be sold.

    step 4

  • At the bottom of each risk, you can see the explanation about each risk.

    step 5

  • Click ‘Reduce Sector Risk’

    step 6

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