Use risk labels as an input, not a complete suitability decision.
A scheme's risk label can help communicate the level of risk associated with its portfolio. It should not be treated as a substitute for a personal risk assessment.
Your own risk capacity depends on cash flow, liabilities, emergency reserves, goal timing and financial resilience. Risk appetite describes how much volatility you are psychologically willing to tolerate.
MyFundGuide uses the lower of risk capacity and risk appetite as a practical boundary for allocation decisions.