New Delhi, Aug. 10 -- Investors often look at a mutual fund's returns before investing, but the risk taken to generate those returns is equally important. The riskometer displayed by mutual funds helps investors understand where a scheme stands on the risk spectrum.

The six risk levels are: Low, Low to Moderate, Moderate, Moderately High, High and Very High.

Multi-asset allocation funds, which fall under the hybrid fund category, are required to invest across at least three asset classes. These can include equity, debt, gold, silver, real estate, cash and cash equivalents, among others.

According to Value Research data, multi-asset allocation funds have different risk levels despite belonging to the same category. As per AMFI's June da...