Hi Folks,
I understand that there is some SEBI rule about investment advisors being mandated to give recommendation in accordance with investors’ risk profiles. I wanted to understand who determines the risk profile? From what I understand, it is determined by advisers after asking for age, income etc. They probably have a framework/formula to assess the profile on the basis of these.
Is the risk profile generated after asking these questions final or it is just a suggested profile?
While I understand that one can recommend a risk profile to investor. But the final word should still be of investor and not be finalised by adviser or anyone else working with a formula/framework?
AI tools seem to be giving different answers and are confusing me further. Please point me to documents/circulars if any that talk about this point specifically.
Thanks,
Mukesh