Market regulator SEBI has issued rules to simplify the information documents of mutual fund schemes.
The market regulator said that with the implementation of this rule, investors will get more information about the scheme and it will be easier for them to understand all the aspects. The new rule will come into effect from April 1, 2024.
Summary of schemes will have to be kept simple
According to SEBI, from April 1, fund houses will have to share the summary of the schemes in the new format. This rule will not apply to the mutual fund scheme whose documents are already deposited with SEBI. According to this circular, the top-10 holdings and fund allocation of the scheme will have to be put on the web link.
Risk will have to be indicated on the riskometer
Information about how much the fund manager himself has invested in any fund will also have to be given. Apart from this, riskometer will have to be mentioned on the first page of the information memorandum of the application and scheme information document. With this, investors will be able to know whether this scheme is suitable for them or not.
Liquidity information regarding any scheme will also have to be given. SEBI said that it will be necessary to provide 6 months’ TER and factsheet of the scheme on the weblink.
