Since the universe of mutual funds is vast with hundreds of funds out there, investors can use the new riskometer provided by SEBI, to choose schemes which are in sync with their risk appetite. This meter is especially useful to investors who are new to the world of mutual funds and is not clear about the scheme matching their RISK PROFILE.

However, it is essential to note that the riskometer can give an overall idea of the risk level, there are many other factors involved that should be considered while selecting a fund and a riskometer should not be the sole indicator.