MUMBAI, Oct. 9 -- The Securities and Exchange Board of India (Sebi) on Monday, 5 October, introduced new guidelines to determine a mutual fund scheme's place in the mutual fund riskometer, and introduced a new category called 'very high risk'. The new rules which take effect on 1 January replace the current model that relies solely on a scheme's category without considering its actual portfolio.
The riskometer is a graphic representation of a scheme's risk, published for the benefit of investors. MFs are mandated to place their schemes in specific categories according to their risk. The six categories now are low, low to moderate, moderate, moderately high, high, and very high.
Funds must update the riskometer on a monthly basis on their ...