AMCs must disclose ‘risk-o-meter’ of the scheme while disclosing the performance of scheme: SEBI

Circular no. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/621, Dated 31.08.2021

To improve the quality of risk and performance disclosure, the SEBI has urged AMCs to include a risk-o-meter of the scheme whenever the scheme’s performance is revealed, as well as a risk-o-meter of the scheme and benchmark where the scheme’s performance is compared to that of the benchmark. The risk-o-meter of benchmark disclosure requirement is applicable to the principal benchmark that is mentioned in the Scheme Information Document.

For international benchmarks, however, the risk-o-meter score may be assigned in accordance with the risk-o-meter score issued to foreign securities as described in the SEBI circular on Product Labelling in Mutual Fund Schemes -Risk-o-meter.

In addition, AMCs shall enter into arrangements with their selected Index providers to provide the risk-o-meter for their benchmarks to the AMCs latest by the fifth day after the end of the month. The provisions of this circular shall be applicable with effect from October 1, 2021. However, AMCs may choose to adopt the provisions of this circular before the effective date

Read The Full Circular Here