New Delhi, June 26 -- The 'riskometer' is a disclosure by the fund house that shows a scheme's risk level, ranging from low to very high. It is based on multiple factors, including the underlying portfolio, market capitalisation, market risk, liquidity, credit risk and interest rate risk, depending on the fund type.

It helps you compare your own risk appetite with the fund's risk level and choose an appropriate scheme.

Let's see what the riskometer means, how to read it and the key points you should know.

The riskometer is a visual indicator that reflects the overall risk associated with a mutual fund scheme. It provides investors with a standard framework to compare the risk levels of different funds before investing.

Every mutual fu...