Mutual funds to make disclosure of risk-o-meter of scheme, benchmark and portfolio details to the investors

The Securities Exchange Board of India through circular dated August 31, 2021 has directed mutual funds to make Disclosure of risk-o-meter of scheme, benchmark and portfolio details to the investors. It is clarified that AMCs shall disclose the following in all disclosures, including promotional material or that stipulated by SEBI:

1. Risk-o-meter of the scheme wherever the performance of the scheme is disclosed
2. Risk-o-meter of the scheme and benchmark wherever the performance of the scheme vis-à-vis that of the benchmark is disclosed.

MCs shall enter into arrangements with their selected Index providers to provide the risk-o-meter for their benchmarks to the AMCs latest by the fifth day subsequent to the end of the month. The provisions of this circular shall be applicable with effect from October 1, 2021.