Investing
Risk profile
Also known as: Risk appetite
How much investment ups and downs you can handle, both financially and emotionally.
Your risk profile is a mix of how long until you need the money, how stable your income is, and how well you sleep when markets fall.
Someone who panic-sells at a 20% drop has a lower real risk appetite than they think, no matter what a quiz says.
Match your investments to your true tolerance, not the returns you wish you could stomach.
For example
If a ₹1L paper loss would make you sell everything in a panic, you are not actually a high-risk investor, whatever the app's quiz said.