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Risk rating

The standard deviation (volatility) of the performance of the fund over the last five years is calculated and then this figure is assigned to a relevant volatility interval. The volatility intervals were then allocated a risk rating from 1 to 5.

Volatility Risk Rating
<5 1
5-10 2
10-15 3
15-20 4
20< 5

For example, a fund with a standard deviation (volatility) of 10.9 would have a risk rating of 3.