How is a fund's risk grade shown?

Under the Financial Consumer Protection Act, financial companies that sell funds must explain the risk grade of investment products, and the example in the Korea Financial Investment Association's Standard Investment Solicitation Rules divides risk into 6 grades (very high risk, high risk, somewhat high risk, moderate risk, low risk and very low risk).

Sales staff must explain what the risk grade means, the related precautions, and why the product was assigned that grade. Also check the key statements in the product description, such as the possibility of principal loss and whether deposit insurance applies.