Disclaimer & Affiliate disclosure: The information provided on this post is for general informational purposes only and should not be considered financial or legal advice. Always consult with a financial advisor or attorney before making any financial decisions. Some of the links in this post are affiliate links, meaning, at no additional cost to you, we will earn a commission if you click through and make a purchase.
A riskometer is a graphical representation of the risk level of a mutual fund scheme.
A mutual fund scheme’s risk level can be calculated in six phases, according to the latest riskometer introduced by Sebi in 2021: low, low to moderate, moderate, moderately high, high, and very high.
Mutual fund companies determine the risk level on the riskometer based on the scheme’s characteristics.
On the riskometer, for example, the risk level of equity funds is mostly between moderately high to very high.
