Product Labeling in Mutual Funds

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....Labeling that would provide investors an easy understanding of the kind of product/scheme they are investing in and its suitability to them. Based on the recommendations of the Committee, it has been decided that all the mutual funds shall 'Label' their schemes on the parameters as mentioned under: a. Nature of scheme such as to create wealth or provide regular income in an indicative time horiz....

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....uments (SIDs). b. Common application form - along with the information about the scheme. The product label with respect to (a) & (b) above shall be placed in proximity to the caption of the scheme and shall be prominently visible. c. Scheme advertisements - placed in manner so as to be prominently visible to investors. 3. This circular shall be applicable with effect from July 1, 2013, to a....

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....¯ बोर्ड Securities and Exchange Board of India Annexure I Few samples of product label for different schemes are illustrated as under: 1. Enumeration of Product label of an Fixed Maturity Plan (FMP) Product Label This product is suitable for investors who are seeking*: regular fixed income for short term. investment in Debt/Money Market Instrument/Govt. Securitie....

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....whether the product is suitable for them. Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk 3. Enumeration of Product label of an Equity Scheme • Product Label This product is suitable ....