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What is the Synthetic Risk and Reward Indicator (SRRI) rating?

The Synthetic Risk and Reward Indicator (SRRI) was defined in 2009 by the Committee of European Securities Regulators (CESR) to provide investors with a method of assessing a fund’s risk.

The SRRI measures the volatility of the fund. Higher volatility means there is greater uncertainty about the size of the changes in a fund’s value. This means that the price of the fund can change quickly and dramatically in either direction. Lower volatility means that a fund’s value is not expected to fluctuate dramatically, but rather to change in value at a steady pace over a period of time.

The table below shows the mapping between the volatility and the SRRI value. The table shows the differences in percentages that the value of a fund may experience over one year (Annualised Volatility). The percentage is linked to the respective SRRI rating. The more limited the variation is, the lower the SRRI Rating of a fund. The higher the variation, the higher the SRRI Rating.

SRRIAnnualised Volatility
10 – 0.49%
20.5 – 1.99%
32 – 4.99%
45 – 9.99%
510 – 14.99%
615 – 24.99%
725% +

The SRRI is calculated using the fund returns for the last five years. If a fund is less than five years old, the returns of a comparable benchmark are used for the period before the fund was launched.


We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.