SEBI has asked AMCs to disclose the fund's return in Rupee terms along with CAGR.
With this, AMCs will have to disclose returns in absolute terms. Let’s look at an example:
|
Fund |
One year |
Three year |
Five years |
|
CAGR |
12% |
8% |
10.5% |
|
Value of Rs.10,000 |
11200 |
12597 |
16475 |
Other key changes in advertisements and disclosure norms:
- Dividends have to disclosed in Rupee terms
- On maturity of close end funds, fund houses will have to advertise about entire distributable dividends
- Overnight funds, liquid funds and money market funds will have to disclose returns of 7 days, 15 days and 30 days
- Fund houses cannot advertise performance if the fund has not completed six months
- Inception date will be date of issuance of MF units and not the date of launch of scheme
- Fund houses will have to update SID on half yearly basis
