Volatility is a first approach to the risk of a fund. The volatility (“standard deviation”) measures how widely has the fund’s return varied from its hystorical average. The higher the standard deviation, the higher the potential loss for the shareholder and, therefore, implies higher risk.
Risk and return profile (SRI)
It offers an illustrative information about the fund’s risk in a 1 to 7 levels scale. It starts from less potential return/ less risk (1) and finishes at a higher return/ higher risk (7). It is important to bear in mind that the level (1) does not imply that the investment is risk free.