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<h1>SEBI Updates Mutual Fund Product Labeling: New Riskometer Introduces Five Risk Categories for Better Investor Protection.</h1> The Securities and Exchange Board of India (SEBI) has updated the product labeling system for mutual funds, increasing risk levels from three to five categories: Low, Moderately Low, Moderate, Moderately High, and High. The previous color-coded system is replaced by a 'Riskometer,' a pictorial representation indicating risk levels. Mutual funds are advised to label their schemes following guidelines from the Association of Mutual Funds in India (AMFI). This update is effective from July 1, 2015, for all existing and new schemes, though early adoption is permitted. The circular aims to protect investors and regulate the securities market.