Sebi proposed color coding scheme to know mutual fund risk meter.

by times news cr

2024-09-29 08:43:23
New Delhi: If you invest in mutual funds and are worried about its risks, then your problem is about to be solved. SEBI has proposed to implement a color scheme to better reflect the risk level of mutual fund schemes. With this, investors will be able to easily understand the risks. Actually, most of the mutual fund schemes are quite risky.

SEBI has suggested that mutual funds should display the existing and new levels of risk in a manner that is easily understood. It is suggested that there will be color coding for six levels of risk. Green color may be for low risk and red color may be for very high risk mutual fund schemes. SEBI has sought suggestions from people for this till October 18.
There is no age limit to become a millionaire, investment bond is necessary, know how much investment will be enough.

You will receive notice of change

It states that if there is any change in the risk level of the mutual fund, the investor will be informed about it immediately. This information will have to be given through notice and e-mail or SMS. Only the investor will benefit from this. This will keep the investor informed about changes in the level of risk from time to time.

Proposal to use these 6 colors

Green: The following risk
Light green-yellow: low to moderate risk
bright yellow: moderate risk
Light Brown: Moderately high risk
dark orange: high risk
Red: very high risk

Invest for big funds

Many investors prefer to invest in mutual funds at this time. The reason for this is that a big fund can be created by investing little money in it. Many investors are making big funds by investing in SIP mutual funds. In this, 15-20 percent interest is available annually on investment. However, investing in it is risky. It is not necessary to get this much interest. Experts recommend investing in mutual funds for the long term.

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