Glossary

Riskometer: meaning, example and why it matters

A mutual fund label that shows a scheme's risk level on a scale from low to very high, as defined by the regulator. It describes the scheme's risk, not your personal suitability.

Worked example

If a scheme labelled very high risk falls 15% in a year, a ₹1,00,000 holding is worth ₹85,000. A low label does not mean a loss is impossible; it means the regulator's method rates the scheme's risk lower.

Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.

Why it matters

It gives a standard way to compare how risky different schemes are before you read the details.

Related terms

Mutual fundVolatility

See it in practice

Mutual fund screener

Frequently asked questions

Does the riskometer predict returns?

No. It describes a scheme's risk level under the regulator's method, not what it will earn.

Is this page investment advice?

No. Riskometer is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.

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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.