Risk measures
What is the riskometer?
The riskometer is SEBI's six-level label for a scheme's risk, from Low to Very High, worked out every month from what the scheme actually holds.
How it works
Equity holdings are scored on market capitalisation, volatility and how easy they are to trade; debt holdings on credit quality, interest rate sensitivity and liquidity. The scores are averaged into a risk value that places the scheme on one of six levels.
Fund houses publish the riskometer every month with the portfolio, within 10 days of the month-end, and tell investors when it changes.
Example
Most equity funds sit at Very High; liquid funds are typically Low to Moderate; overnight funds are usually Low.
Keep in mind
- Match the riskometer with your own risk profile.
- Very High is normal for equity and is not a warning on its own.
Questions people ask
How often does a scheme's riskometer change?
It is reviewed every month and can move up or down with the portfolio.
Where can I see it?
In the factsheet, on the fund house's website and on AMFI's website. Our riskometer guide explains each level.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.