A risk profile is a tool to understand an individual’s willingness and potential to take risks. A risk profile is vital for figuring out a suitable investment asset allocation for a portfolio. Organizations use a risk profile to mitigate various risks and threats.

Asset allocation models are a mix of investments i.e., stocks (growth investments), sukuks (defensive investments), etc. Rather than constructing your own portfolio, you simply choose the sharia-compliant asset allocation model that best matches your goals and objectives.