Finance Glossary
SRI (Synthetic Risk Indicator)
What is SRI?
The SRI (Synthetic Risk Indicator) is an indicator assigned to each financial investment product (SICAV or FCP) to assess its overall risk and return profile, presented in the form of a numerical scale ranging from 1 for the lowest risk to 7 for the highest risk, with the clarification that the lowest risk category (level 1) does not mean "risk-free."
This risk indicator is produced by combining market risk (the decline in the value of investments) with the credit risk of the issuer (the possibility that the issuer may not be able to repay).
The risk level associated with a fund may change over time and will be updated in the PRIIPs KID.