Answer & Explanation
Option: All mutual funds shall, beginning January 1, assign a risk level to their schemes at the time of launch, based on the scheme’s characteristics.
Explanation:
The Securities and Exchange Board of India (SEBI) has made it mandatory for mutual funds to assign a risk level to schemes, based on certain parameters. In its circular issued on October 5, the regulator made it mandatory for mutual fund houses to characterise the risk level of their schemes on a six-stage scale from “Low” to “Very High”. All mutual funds shall, beginning January 1, assign a risk level to their schemes at the time of launch, based on the scheme’s characteristics.
