Investor risk profile and suitable Mutual Funds schemes

Investor risk profile and suitable Mutual Funds schemes zoom-icon

Mutual Funds Sahi Hai?

When it comes to investing, people have different financial goals and risk appetites. The choice of your investments depends on your idea of long-term and short-term goals. These factors deeply influence your investment choices and approach. A risk-o-meter serves as a tool to narrow your search for a suitable scheme.

Understanding the new risk-o-meter

The risk-o-meter's innovative aspect lies in its risk grading approach. Unlike the previous risk-o-meter, which merely associated fund categories with varying risk grades, the new risk-o-meter derives its risk assessments from the specific assets held within a fund. This means that the risk grade assigned to a particular fund scheme is based on that scheme's underlying assets and their concentration. This shift brings risk evaluation closer to reality as it considers the actual risks linked to the assets the fund owns.

Selecting a suitable Mutual Funds scheme

In conjunction with your investment goals, risk appetite and time frame, the risk-o-meter's readings pinpoint investments that best match your criteria.

For example, low-risk mutual funds like Overnight and Arbitrage Funds may be suitable for investors prioritising capital preservation with minimal risk exposure in the short term.

On the other hand, investors striving for maximum returns over the long term, even if it means risking their capital, align well with mutual funds schemes that fall under the ‘very high’ risk category.

For more information, refer to the table provided on the left side.

However, the key takeaway is not to select an investment based solely on its risk category. Instead, diving deeper and carefully evaluating the specific schemes within each category is crucial. Remember, not all funds within the same risk category are identical. They may have distinct strategies, holdings, and potential outcomes. Therefore, it's recommended to thoroughly analyse and choose the investment scheme that aligns most effectively with your financial goals and risk tolerance. If you need help, do not hesitate to seek help from a financial expert.


Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

I'm ready to invest