Your risk appetite is a great way to figure out which financial possibilities are best for you. Before moving on to the investment step, assess your risk tolerance.   You can use a variety of online calculators to check your risk profile. Your risk appetite is influenced by a variety of factors. For example your age, financial situation, investment knowledge, and other financial responsibilities.   If you’re a conservative, risk-averse investor. Especially government-sponsored schemes and fixed deposits are preferable options. You could invest in mutual funds if you’re willing to take some chances now and then. If, but, you’re a risk-taking investor, this is the best alternative for you.