Tag Archives: Mutual fund colour label

Are mutual fund colour code labels a true indicator of risk?




SEBI has initiated the system of colour coding/ product labeling for mutual fund schemes, wherein the mutual fund application forms, brochures and all advertisements in newspapers and magazines will have a product label of a specific colour to indicate the level of risk associated with the investment. This came into effect from 1 July 2013 and will help investors understand the risk profile of the fund before considering investing.  The MFs have been divided in to three broad categories and assigned specific colours-

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