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of <h1>Mutual Funds Must Use Color-Coded Labels for Risk Levels Starting July 1, 2013, to Protect Investors.</h1> A committee was established to address mis-selling in mutual funds by examining product labeling systems. Based on its recommendations, mutual funds are required to label their schemes with details on the nature of the scheme, investment objectives, and risk levels using color codes: blue for low risk, yellow for medium risk, and brown for high risk. A disclaimer advises investors to consult financial advisers if unsure about product suitability. Labels must appear on initial offering forms, key information memorandums, scheme information documents, and advertisements. This requirement is effective from July 1, 2013, and aims to protect investor interests.
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