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What is Mutual Fund ?
Since the universe of mutual funds is vast with hundreds of funds out there, investors can use the new riskometer provided by SEBI, to choose schemes which are in sync with their risk appetite. This meter is especially useful to investors who are new to the world of mutual funds and is not clear about the scheme matching their RISK PROFILE.
However, it is essential to note that the riskometer can give an overall idea of the risk level, there are many other factors involved that should be considered while selecting a fund and a riskometer should not be the sole indicator.
Riskometer
Scheme Label | Suitable Investor Type | Investors Personal |
---|---|---|
Moderate Low | Moderately Conservative | An investor is willing to accept a small level of risk in exchange for some potential returns over a medium to long-term. |
Moderate | Moderate | An investor can tolerate a moderate level of risk in exchange for relatively higher potential returns over a medium to long-term. |
Moderately High | Moderately Aggressive | Investor is keen to accept a relatively higher risk to maximize potential returns over the medium to long-term. |
High | Aggressive | Investor is willing to accept a significant risk to maximize potential returns over the long terms and is aware that she/he may lose a significant part of the capital. |
Very High | Very Aggressive | Investor is willing to accept a significant high risk to maximize potential returns over the long terms and is aware that she/he may lose a significant part of capital. |
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