Guidelines on Disclosure of risk-o-meter of Scheme, Benchmark and Portfolio details to Investors issued SEBI

1. The Market Regulator, Securities, and Exchange Board of India (SEBI) have issued the guidelines on Disclosure of risk-o-meter of scheme, benchmark, and portfolio details to the investors.

2. SEBI has mandated mutual funds to disclose to the investors in which the unitholders are invested as on the date on which the disclosures are stipulated namely risk-o-meter of the scheme and the benchmark along with the performance disclosure of the scheme vis-à-vis benchmark and details of the portfolio while communicating the fortnightly, monthly and half-yearly statement of scheme portfolio via email.

3. It has been clarified that AMCs shall disclose in all disclosures, including promotional material or that stipulated by SEBI namely risk-o-meter of the scheme wherever the performance of the scheme is disclosed; and risk-o-meter of the scheme and benchmark wherever the performance of the scheme vis-à-vis that of the benchmark is disclosed.

4. The portfolio disclosure in terms of para 3 of SEBI circular dated June 5, 2018, on ‘Go Green Initiative in Mutual Funds’ shall also include the scheme risk-o-meter, name of benchmark, and risk-o-meter of the benchmark.

5. The disclosure requirement of the risk-o-meter of the benchmark is applicable for the primary benchmark which is specified in the Scheme Information Document. For international benchmarks, the risk-o-meter score may be assigned in line with the risk-o-meter score assigned to foreign securities as specified in the SEBI circular on Product Labeling in Mutual Fund schemes –Risk-o-meter dated October 5, 2020.

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