Disclosure of Risk adjusted Return - Information Ratio (IR) for Mutual Fund Schemes.

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....sociation of Mutual Funds in India (AMFI) Dear Sir/Madam, Subject: Disclosure of Risk adjusted Return - Information Ratio (IR) for Mutual Fund Schemes. 1. The extant provisions of the SEBI (Mutual Funds) Regulations, 1996 (hereinafter referred to as "MF Regulations") and Master Circular specified thereunder inter alia mandate filing of periodic information regarding schemes' performance b....

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....actor into the calculation. 4. In order to bring more transparency in disclosures made by AMCs and aid better decision making by investors, proposed disclosure of IR as a financial metric to measure the RAR of a scheme portfolio, was placed for public consultation and deliberated in Mutual Funds Advisory Committee (MFAC). 5. Based on the recommendation of MFAC and analysis of public feedback....

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....eturns) / Standard Deviation of Excess Return Excess Return= Portfolio Rate of Returns less Benchmark Rate of Returns • Benchmark used in the above formula shall be the Tier 1 benchmark currently used by the equity oriented Mutual Fund schemes. • Volatility/Standard deviation shall be calculated on the basis of daily return values. • Daily portfolio ....

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....ded, providing clear and concise explanation on the following, in easy-to-understand language: 5.1.7.1. Explaining IR 5.1.7.2. Formula for calculation of IR 5.1.7.3. Interpretation of IR with sufficient illustrations covering various scenarios. 5.1.8. In order to ensure uniformity in explanation of IR across the MF industry, AMCs shall provide a hyperlink in the aforesaid format on the....