From October 1, 2021, mutual fund companies will have to disclose the risk level of benchmark of a scheme along with the risk level of a scheme through risk-o-meter.
SEBI has asked fund houses to disclose risk level of the scheme and benchmark through risk-o-meter and its performance with respect to benchmark along with the disclosure of scheme performance.
With this, you clients will get additional information about mutual fund schemes on their account statement and promotional materials.
SEBI clarified that the risk-o-meter of benchmark is applicable for benchmark specified on scheme information document (SID).
Risk-o-meter for international benchmark will be depend on score assigned to foreign securities, said SEBI.
Further, fund houses will have to offer a mechanism where investors can view or download their account statement by keying in registered email id.
