Mutual fund product labeling requires a six level Risk o meter, monthly disclosure and unitholder notification for changes. The circular mandates depiction of a Risk-o-meter with six risk bands for mutual fund schemes, requires initial assignment at launch, monthly portfolio level evaluation and disclosure within ten days of month end, and scheme level annual reporting of risk and change frequency. Annexure A prescribes a numeric scoring methodology-credit, duration and liquidity metrics for debt; market capitalisation, volatility and impact cost for equity; specified rules for derivatives, REITs/InvITs, gold, foreign securities and fund-of-fund holdings-aggregated by AUM and mapped by thresholds to the six Risk-o-meter levels. Changes must be notified to unitholders and are not treated as fundamental attribute changes.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Mutual fund product labeling requires a six level Risk o meter, monthly disclosure and unitholder notification for changes.
The circular mandates depiction of a Risk-o-meter with six risk bands for mutual fund schemes, requires initial assignment at launch, monthly portfolio level evaluation and disclosure within ten days of month end, and scheme level annual reporting of risk and change frequency. Annexure A prescribes a numeric scoring methodology-credit, duration and liquidity metrics for debt; market capitalisation, volatility and impact cost for equity; specified rules for derivatives, REITs/InvITs, gold, foreign securities and fund-of-fund holdings-aggregated by AUM and mapped by thresholds to the six Risk-o-meter levels. Changes must be notified to unitholders and are not treated as fundamental attribute changes.
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