With dependent Adults
And is Primary Income Source
% of Savings of Monthly Income
Where You Invest Currently
If You Invest 1,00,000/- what u do if Your Investment Down in by 20% in 2 Month's
What Would You Like
Learn More About Risk Assessment
As shown in the figure, the riskometer has five levels of risks. It is made to look similar to a car’s speedometer and indicates the scheme’s risk level. The five risk levels are ‘low’, ‘moderately low’, ‘moderate’, ‘moderately high’ and ‘high’. Let’ see each of them one by one.The earlier version of the riskometer had three colors blue, yellow and brown representing low, medium and high levels of risks respectively. However, AMFI felt the representation was inadequate and decided to revamp the riskometer by categorizing risk into 5 levels. This helped investors get a clearer picture regarding the right fund to invest in.Note: The colors shown in this diagram do not depict the actual colors of the riskometer. The picture is for representation purpose only.
Low-risk levelSecurities and instruments such as fixed maturity plans, gilt funds and income funds usually come under this classification. These are considered to be the safest mutual funds and are suited for an investor looking for a safe income source.
Moderately low-risk levelShort to medium term bonds usually come under this category. They are considered safe investments and are suited for investors who can stay invested for a period of 1-3 years.
Moderate risk levelIt signifies that the funds in this category have their principal at a moderate risk. Instruments such as Arbitrage funds, MIP funds, Hybrid debt-oriented funds. This category of funds are suited for a semi-conservative investor who intends to book decent profits at the same time wants to keep his risk limited. Funds under this label are suited medium to long-term investment horizon.
Moderately high-risk levelIt signifies that the funds in this category have their principal at a moderately high risk. Usually, balanced equity-oriented funds, Diversified Equity funds, Index Funds and Gold ETFs are classified under this label. Products under this label are suited for investors seeking to create wealth over a long period of time. Investment in equity under such funds is related to the large-cap segment.
High-risk levelThis label means that the funds in this category have their principal at a high risk. Sectoral funds, thematic funds, International funds and micro-cap funds are a few examples of funds under this label. Products under this label are suited for investors seeking to create wealth over a long period of time and are fine with the high risk associated with their bet.
3. Risk profiling of investorsSimilar to the risk labels on the riskometer, investors can also be classified based on their ability to take risks in investments. See which band you fall into.
|Riskometer label||Suitable Investor Type||Investor Persona|
|Low||Conservative||Investor’s top priority is the safety of capital. She/he is willing to accept relatively low returns against a low risk of principal.|
|Moderately Low||Moderately Conservative||Investor is willing to accept a small level of risk in exchange for some potential returns over a medium to long-term.|
|Moderate||Moderate||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.|