In recent times, mutual funds have undergone many regulatory changes. The primary motive behind most of these changes is to make mutual fund investments more transparent and safe for investors. One of the noteworthy changes that are being implemented by SEBI is the introduction of risk levels attached to all mutual fund schemes.
SEBI announced the introduction of a new riskometer back on October 5, 2020. This has come into effect on January 1 2021. Accordingly, all mutual fund houses have been instructed to notify investors about the risk level of their schemes. The risk levels must have a six-stage scale ranging from “Low” to “Very High”.
Are you curious about what this means for you as an investor and how it could help you invest better? Let’s have a look at some important aspects to note about the new mutual fund riskometer. (more…)