SEBI Disclosure of risk-o-meter of scheme, benchmark and portfolio details to the investors

Last updated: 01 September 2021

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The Securities and Exchange Board of India (SEBI) has issued new guidelines requiring mutual funds to provide investors with more transparent information. This includes disclosing the risk-o-meter for both the scheme and its benchmark, alongside scheme performance details. Additionally, portfolio information will be more accessible, with direct links provided via email for investors to view or download their subscribed scheme portfolios.

Securities and Exchange Board of India CIRCULAR SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/621 August 31, 2021 All Mutual Funds/ Asset Management Companies (AMCs)/ Trustee Companies/Boards of Trustees of Mutual Funds/ Association of Mutual Funds in India (AMFI)/ Registrar and Transfer Agents of Mutual Funds (RTAs) Sir/ Madam, Subject: Disclosure of risk-o-meter of scheme, benchmark and portfolio details to the investors 1. SEBI videcircular SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/555

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FAQ :

The circular aims to enhance transparency by mandating mutual funds to disclose the risk-o-meter of schemes and benchmarks, along with portfolio details, to investors.

The provisions of this circular are applicable from October 1, 2021.

Mutual funds must disclose the risk-o-meter of the scheme and its benchmark wherever scheme performance is disclosed or compared against the benchmark.

Asset Management Companies (AMCs) will provide a link via email to registered investors, allowing them to directly view or download the portfolio of schemes they have subscribed to.

Yes, for international benchmarks, the risk-o-meter score should be assigned in line with the risk-o-meter score assigned to foreign securities.

AMCs must arrange with their Index providers to receive the risk-o-meter for their benchmarks by the fifth day after the end of the month.