The riskometer is a standardised risk measurement scale introduced by the Securities and Exchange Board of India (SEBI) for Mutual Funds. All mutual fund scheme documents have to display the riskometer upfront and clearly so that investors know the risk associated with that particular fund.
The riskometer classifies risk into six distinct levels. These include Low, Low to Moderate, Moderate, Moderately High, High and Very High. Refer to the provided illustration on the left side.
Low Risk: The funds that fall under this category have the least risk due to their underlying securities, making them suitable for individuals seeking capital protection to some extent.
Low to Moderate Risk: These are for investors willing to take a bit of risk to get some returns over a medium to long time. Most ultra-short
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