Mutual Fund Basics
Riskometer & Potential Risk Class
SEBI’s six-level risk label for every scheme.
Updated 27 September 2026 · SEBI rules as of 2026
Levels
Low, Low to Moderate, Moderate, Moderately High, High, Very High
Mutual Fund BasicsOverview
Every scheme shows a riskometer with six levels — Low to Very High — evaluated monthly. Debt schemes also show a Potential Risk Class (PRC) matrix combining interest-rate risk and credit risk.
| Particular | Details |
|---|---|
| Levels | Low, Low to Moderate, Moderate, Moderately High, High, Very High |
| Review | Monthly |
| Debt add-on | PRC matrix (3×3) |
PRC matrix
| Interest-rate risk → | Credit A (low) | Credit B (moderate) | Credit C (high) |
|---|---|---|---|
| Class I (low rate risk) | A-I | B-I | C-I |
| Class II | A-II | B-II | C-II |
| Class III (high rate risk) | A-III | B-III | C-III |
Frequently asked questions
Can a riskometer change?
Yes, it is reassessed monthly based on the portfolio.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.