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The risk grade of my fund moved from 'High' to 'Very High.' Should I be concerned?

According to new rules, most equity funds would be slotted 'Very High' and hence, the risk gradation needs to refine further to be of any use, suggests Dhirendra Kumar

The risk grade of the equity fund I am invested in has moved from 'High' to 'Very High' after the new provisions came into effect. Should I be concerned?
- Vibhor

No, not really, because most equity funds are going to witness this kind of a change in their risk gradation. I would say that for the equity risk gradation, the risk-o-meter needs to undergo further refinement and is far from being perfect or be of any practical use. I would say that most equity funds are going to get slotted into 'High' and 'Very High' and many of them will be 'Very High'. So, if you are looking for relatively lower risk in an equity fund going by the risk-o-meter, you are unlikely to find one.

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