Everybody knows how mutual funds can be a risk in the future but how?
Well everybody knows the phrase ” mutual fund investments are subject to market risk” but not everybody knows the risk coming from.
It is important for every individual to know at least the basics of mutual funds as there are very few people who know about them.
That is why the SEBI the market regulator has introduced a way out for all of this. they introduced Riskometer back in 2015.
The Riskometer basically help people find out the risk that comes handly with an investment.
There are many levels of risk in this market starting from low, low to moderate, moderate, moderately high and high.
The problem with the current Riskometer is it acts like a category not a fund.
Well SEBI has solved that problem also for the people by the risk category will be assigned with each mutual funds.
There are talks about launching a new riskometer which will be launched somewhere In starting of 2021.
SEBI has some set guidelines on how the riskometer will work and the risk will be recalculated for every individual.
Also, there will be a change in the fund houses as the investors should also know what kind of risk is there and what is the frequency of risks will be emerging in the near future.
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