Yes, the Alpha Ratings can be customized or tailored for individual investors with different risk tolerance levels or investment goals. The Alpha Ratings benchmarks all listed instruments in India on a risk-adjusted return basis. These ratings are 100% automated and updated every month, making them suitable for buy and hold investors.
Investors can use Alpha Ratings recommendations based on their risk tolerance levels. For example, investors looking for low risk-steady returns would focus only on five star rated stocks while investors with higher risk tolerance may be directed towards instruments that are four and three star rated.
In summary, investors can think of Alpha Ratings categories as follows:
- 5-star rated: Investment grade and low risk
- 4 and 3-star rated: Investment grade but high risk
- 2 and 1-star rated: Not investment grade and very high risk