How Riskometer works
The displayed level reflects factors prescribed for the portfolio and can change as the portfolio changes. It allows a common risk vocabulary but does not predict the size or timing of a loss.
The figure should always be read with its measurement period, product type and source. A precise-looking number can still answer the wrong question when two unlike products or time periods are compared.
An example
A scheme moving from 'High' to 'Very High' signals a change in assessed risk; it does not mean a fall will happen immediately.
Why it matters for your family
Match the label and underlying risks to the goal horizon and capacity for loss. Do not use it as the only comparison between categories with different purposes.
Connect the figure to a dated goal before acting. Money for an emergency or near-term payment has different constraints from retirement money, even when the product description quotes the same statistic.
Questions people ask
- What does Riskometer mean?
- The SEBI Riskometer is a standard label showing the risk level assigned to a mutual-fund scheme on a defined scale.
- Why does Riskometer matter for a family?
- Match the label and underlying risks to the goal horizon and capacity for loss. Do not use it as the only comparison between categories with different purposes.
- Does a good Riskometer figure guarantee a result?
- No. It is a measurement of past or assumed conditions. Its meaning depends on the period, data and products being compared, and it cannot guarantee a future outcome.
- Where can I verify information about Riskometer?
- Start with SEBI Investor, linked on this page, and the current official document for the product or tax year involved.