Mutual Fund Risk on WebNotes

Riskometer framework for Indian mutual funds

Sat, 16 May 2026 00:00:00 +0000

The riskometer is the SEBI-mandated graphical risk-labelling mechanism for Indian mutual fund schemes, displayed as a speedometer-style dial on every Scheme Information Document (SID) , Key Information Memorandum (KIM) , monthly factsheet , and advertisement. It communicates a scheme’s principal risk level on a six-level ordinal scale and is the primary plain-language risk disclosure available to retail investors. First introduced on a five-level scale in 2013 and revised to a six-level portfolio-based framework by SEBI Circular SEBI/HO/IMD/DF3/CIR/P/2020/197 dated 5 November 2020 (effective 1 January 2021), the riskometer is recomputed monthly on the basis of the scheme’s end-of-month portfolio and published within 10 calendar days of month-end.

AMFI Risk-O-Meter

Tue, 12 May 2026 00:00:00 +0000

The AMFI Risk-O-Meter is a standardised risk-labelling tool applied to every mutual fund scheme registered in India. It is displayed as a dial-shaped graphic with six ascending risk levels, presented prominently on scheme information documents (SIDs), factsheets, key information memoranda (KIMs), all advertisements, and account statements. The tool was introduced in 2013 and substantially revised in 2021 following a SEBI circular that replaced the earlier five-level system with a more granular six-level framework and changed the risk measurement methodology from a category-level assignment to a portfolio-level, monthly-computed assessment.

Riskometer, the six-band risk scale for mutual funds

Tue, 12 May 2026 00:00:00 +0000

The riskometer is a standardised risk-disclosure tool mandated by SEBI for all mutual fund schemes in India, represented graphically as a dial or gauge with six risk bands, Low, Low to Moderate, Moderate, Moderately High, High, and Very High, that communicate the level of risk associated with a scheme’s portfolio to prospective and existing investors. Every mutual fund scheme in India is required to display its riskometer label on the Scheme Information Document (SID), Key Information Memorandum (KIM), fund factsheets, and all scheme advertisements.