Mutual fund risk-o-meter: All you need to know

Risk-o-meter tells you the risk level of a mutual fund and helps you make better investment decisions by comparing it with other funds that fall under the same category. As you can see, the risk levels of mutual funds are categorised as Low, Low to Moderate, Moderate, Moderately High, High, and Very High. How the risk level is assessed Risk grades are assessed based on a mutual fund's underlying securities. Put simply, it depends on what kind of stocks or bonds are owned by that particular mutual fund. How an equity fund is assessed Are there any limitations? We see that most equity funds have been assigned a standard 'Very High' risk without considering the fund's basic characteristics, which can mislead

This article was originally published on December 12, 2022.