The SRI is a standardised risk indicator that takes into account both, the volatility of a financial instrument (market risk) and the creditworthiness of the issuer (credit risk).
For „investment funds“, only market risk is included in the calculation, as investment funds are set up in accordance with InvFG 2011 as “Sondervermögen” and therefore the credit rating of the managing company has no influence on the calculation of the SRI. An exception in the calculation of the SRI are so-called „guarantee funds“, as these funds are guaranteed by an external credit institute, whose credit worthiness is taken into account in the calculation of the SRI.
The calculation results in a ranking on a scale that runs from 1 to 7, with 1 being the lowest and 7 being the highest risk. The grades within the 7-part scale do not match the 7-part scale of the SRRI.