SEBI directions for Disclosure of Risk adjusted Return Information Ratio (IR) for Mutual Fund Schemes

SEBI has issued directions for Disclosure of Risk adjusted Return Information Ratio (IR) for Mutual Fund Schemes. Mutual Funds/ AMCs shall disclose IR of a scheme portfolio on their website along with performance disclosure, on a daily basis. AMFI shall ensure that such disclosure shall be available on its website in a comparable, downloadable (spreadsheet) and machine readable format. IR disclosure shall be applicable only for equity oriented schemes.

In order to ensure better understandability about IR by investors, adequate steps shall be undertaken by AMCs and AMFI to educate investors about RAR, IR and their significance in scheme performance evaluation. In addition, an allocation shall be earmarked from the budget for investor education, leveraging social/mass media channels to maximize outreach and impact.