(ET)
Markets regulator Sebi on Monday revamped the product labelling on mutual fund schemes under the risk-o-meter by introducing “very high risk” category to warn investors. The existing five categories to measure risks are – low, low to moderate, moderate, moderately high, and high.
Based on the scheme characteristics, mutual funds will assign a risk level for schemes at the time of launch of scheme/new fund offer, Securities and Exchange Board of India (Sebi) said in a circular.It further said any change in risk-o-meter will be communicated by way of notice-cum-addendum and by way of an e-mail or SMS to unit holders of that particular scheme.
Risk-o-meter will be evaluated on a monthly basis and mutual fund houses will have to disclose the risk-o-meter along with portfolio disclosure for all their schemes on their respective website and on the industry body Amfi website within 10 days from the close of each month.
