Market regulator SEBI has introduced new rules to simplify mutual fund scheme information. Starting April 1, 2024, investors will benefit from clearer and more accessible information about mutual funds.
Key Changes
Simplified Summaries: Fund houses must present scheme summaries in a new, easy-to-understand format. Existing documents filed with SEBI are exempt from this rule.
Top Holdings and Fund Allocation: The top-10 holdings and fund allocation details will be available on a web link.
Risk Disclosure: The riskometer indicating a scheme’s risk level will be prominently displayed on the first page of application and scheme information documents.
Fund Manager Investments: Information regarding the fund manager’s personal investment in a scheme will be disclosed.
Liquidity Information: Investors will receive liquidity details for each scheme.
Expense Ratio and Factsheet: Six months’ Total Expense Ratio (TER) and a factsheet for each scheme will be accessible via a web link.
These changes aim to make mutual fund information more user-friendly and transparent for investors.
