Risk-o-meter

Risk-o-meter is a means to assign risk level to mutual funds schemes. The SEBI (Securities and Exchange Board of India) recently made it mandatory for mutual funds to assign such levels to help investors take more informed decisions. The risk-o-meter has a 6 stage scale ranging from ‘Low’ to ‘Very High’. It is to be evaluated on a monthly basis and updated on the mutual funds’ websites and the AMFI (Association of Mutual Funds in India) website.