--- title: "The riskometer explained | RupeeCase" description: "The six step riskometer on each strategy, from Low to Very High, and the score the server adds up to set it." source_url: "https://www.rupeecase.com/learn/terminal/riskometer" --- ## Watch: Riskometer The riskometer runs from Low to Very High.The riskometer: what sets Low to Very High? 5 chapters, 0:45, with voice and music 1. [Chapter 1Where it is0:17](/instiv2/media/tut3/riskometer-where-phone-dark-v3-va2.mp4) 2. [Chapter 2What it means0:06](/instiv2/media/tut3/riskometer-meaning-phone-dark-v3-va2.mp4) 3. [Chapter 3Worked example0:06](/instiv2/media/tut3/riskometer-example-phone-dark-v3-va2.mp4) 4. [Chapter 4How to read it0:06](/instiv2/media/tut3/riskometer-reading-phone-dark-v3-va2.mp4) 5. [Chapter 5Watch out0:10](/instiv2/media/tut3/riskometer-watch-phone-dark-v3-va2.mp4) Screens from the RupeeCase app on sample data. Strategy figures are model, back tested, as of the date on screen. Formula and example numbers are illustrative. Mark as watched 2In this screen ## Every button the video points at. A still from each chapter with its buttons and fields numbered. Pick a number to zoom in on it; hover the still for a close up; Esc shows the whole screen again. Sample data, no order is placed. ### Chapter 1: Where it is 1 Show the whole screen 1 Show the whole screen 1. 1**Six steps**The riskometer runs from Low to Very High. Shown in the video, not on this still 2. 2**Riskometer** The same scale sits at the top of the strategy page. Shown in the video, not on this still ## Where it is ScreenMarketplace and StrategyBasic The coloured scale on each Marketplace card and at the top of the strategy page (side panel on desktop). Basic and Advanced. Index in this video: [Allcap](/strategies/allcap) (strategy page). ## What it means The riskometer places a strategy on six steps: Low, Low to Moderate, Moderate, Moderately High, High, Very High. The server sets it from a score: how broad the stock universe is, how few stocks are held, how far past returns strayed from the benchmark, and whether there is a single asset class. ## The formula Add points for a broad universe, for few stocks, for returns far from the benchmark and for a single asset class. More points, higher step. As computed in the RupeeCase app`score = universe (NIFTY 50: 1 ... NSE universe: 4) + few stocks (5 or fewer: 4, 10 or fewer: 2, 20 or fewer: 1) + gap between gross and benchmark return (over 5 points: 1, 15: 2, 30: 3, 50: 4) + 1 if a single asset class up to 2 Low, 4 Low to Moderate, 6 Moderate, 8 Moderately High, 10 High, above 10 Very High` ## Worked example Example only * Universe NIFTY 500: 3 points * 50 stocks: 0 points; returns 40 points above the benchmark: 3 * Single asset: 1 point. Total 7: Moderately High ## How to read it * Low to Moderate steps suit a calmer path in the history. * Moderately High and above went with deeper falls in the history. * Read it with max drawdown and volatility, not alone. ## Watch out * The tip says "set by the strategy design", but past return gap also counts. * An admin can override the level; "Not rated" means none is set. * It is a scale for the model, not a check of your own risk profile. ## Transcript Tap Sound on for voice and music. These are the captions of the video, chapter by chapter. 1. 0:00**Where it is.** The riskometer runs from Low to Very High. 2. 0:17**What it means.** Add points for a broad universe, for few stocks, for returns far from the benchmark and for a single asset class. More points, higher step. 3. 0:24**Worked example.** Worked example, example only: Universe NIFTY 500: 3 points. 50 stocks: 0 points; returns 40 points above the benchmark: 3. Single asset: 1 point. Total 7: Moderately High. 4. 0:29**How to read it.** How to read it: Low to Moderate steps suit a calmer path in the history. Moderately High and above went with deeper falls in the history. Read it with max drawdown and volatility, not alone. 5. 0:35**Watch out.** Watch out: The tip says "set by the strategy design", but past return gap also counts. An admin can override the level; "Not rated" means none is set. It is a scale for the model, not a check of your own risk profile. ## Terms in this tutorial * [volatility](/learn/glossary#volatility)How much returns fluctuate. * [drawdown](/learn/glossary#drawdown)The peak-to-trough decline during a specific period. * [SEBI](/learn/glossary#sebi)Securities and Exchange Board of India. ## Learn it in depth * [Module 2.3: Risk Metrics That Matter8 min read, free](/learn/path-2/module-2-3-risk-metrics-that-matter) * [Module 4.6: Asset Allocation for Your Goals and Risk Profile10 min read, free](/learn/path-4/module-4-6-asset-allocation-for-your-goals-and-risk-profile) TKeep watching ## Next tutorial. [0:51Next tutorial, Read a strategyMinimum investment: why does each strategy have one?The minimum is what it takes to buy at least one share of every stock at its target weight. How the server works it out and where the app enforces it.Watch next](/learn/terminal/minimum-investment) ### Related tutorials * [0:56Read a strategy, BasicMax drawdown: how bad did it get?0:56 video, BasicWatched](/learn/terminal/max-drawdown) * [0:54Read a strategy, AdvancedSharpe and volatility: how bumpy was the ride?0:54 video, AdvancedWatched](/learn/terminal/sharpe-and-volatility) * [1:06Read a strategy, BasicGrowth per year: how fast did the model grow?1:06 video, BasicWatched](/learn/terminal/growth-per-year) [All 67 terminal tutorials](/learn/terminal/) Try it in Practice ## See it on your own screen. Practice mode runs the whole terminal without real orders, so you can open any strategy and find every screen from this tutorial for yourself. [Sign up for RupeeCase](https://invest.rupeecase.com/signup)[Glossary](/learn/glossary) Explore next ## Keep learning the terminal. * [TopicRisk profile and allocation reading list: capacity, tolerance and the mixA reading list: guides, modules, tools and questions](/topics/risk-profile-and-allocation/) * [TutorialRebalance cadence: how often does the strategy trade?0:56 video, Basic](/learn/terminal/rebalance-cadence) * [TutorialRs 10,00,000 became: what do the hero figure and periods show?1:08 video, Basic](/learn/terminal/hero-figure-and-periods) * [TutorialThe benchmark line: what is the strategy compared with?0:57 video, Basic](/learn/terminal/benchmark-line) * [TutorialAlpha: which of the two alphas is this?1:08 video, Advanced](/learn/terminal/which-alpha) * [TutorialNet return and charges: what do estimated costs take?0:47 video, Basic](/learn/terminal/net-return-and-charges) Community ## Join my WhatsApp group. Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera Education only, not investment advice. Screens are recordings of the RupeeCase app on sample data. Strategy figures are model, back tested and after estimated charges, as of the date on screen; they are not client returns and not a promise of future returns. Formula and worked example numbers are illustrative. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a mutual fund, a PMS, an AIF or a SEBI registered investment adviser. Trades execute through your own SEBI registered broker and the shares sit in your own demat. 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