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Read articleReading the Riskometer on Every Scheme
SEBI requires every scheme to show a riskometer. Here is how to read its six levels.
What is the riskometer?
The riskometer is a visual scale that SEBI requires mutual funds to display for every scheme. It indicates the level of risk associated with the scheme’s portfolio.
The six levels
Schemes are placed on one of six levels: Low, Low to Moderate, Moderate, Moderately High, High and Very High. The level is reviewed monthly based on the portfolio.
Why it matters
The riskometer helps you quickly compare schemes and check whether a scheme matches your comfort with risk. It is one input among many and should be read alongside the scheme documents.
Where to find it
You will find the riskometer on the scheme factsheet, the AMC website and in advertisements for the scheme.
This article is for general information and investor awareness only and should not be treated as a recommendation. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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