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Glossary· Risk

What is Riskometer?

A six-step risk label from Low to Very High, in SEBI's format.

SEBI requires every scheme to publish one. The badge here is our own estimate from the fund's category and measured volatility, not a scrape of the AMC's label, so treat it as a comparable ranking rather than the official disclosure — that lives in the scheme's own factsheet.

For the formula and the constants behind this figure, see Methodology.

Guides that use Riskometer

10 guides put this term to work.

More on risk

How rough the ride was — the half of the story a return number hides.

Standard deviation
How much daily returns scatter around their average, annualized. Trailing 3 years.
Maximum drawdown
The largest peak-to-trough fall the fund has ever had, over its full history.
Sharpe ratio
Return above the risk-free rate, per unit of total volatility.
Sortino ratio
Like Sharpe, but only downside moves count as risk.