MF schemes to disclose risk-o-meter changes every month from Jan 1

New Delhi, Oct 5 : Mutual fund schemes will be evaluated by the investors on the basis of a ‘risk-o-meter’ on a monthly basis beginning January 1.
The Securities and Exchange Board of India (Sebi) announced on Monday that mutual funds/AMCs shall disclose the risk-o-meter along with portfolio disclosure for all their schemes on their respective websites and on the AMFI website within 10 days from the close of each month.
Any change in the risk-o-meter shall be communicated by way of notice-cum-addendum and by way of an e-mail or SMS to the unit holders of that particular scheme.
The risk-o-meter will have six levels of risk for mutual fund schemes — low risk, low to moderate risk, moderate risk, moderately high risk, high risk and very high risk.
The very high risk category has been added to the five other categories.
Sebi, based on the recommendations of the Mutual Fund Advisory Committee (MFAC), has reviewed the guidelines for product labelling in mutual funds.