It has been decided that all the mutual funds shall ‘Label' their schemes on the parameters as mentioned under:

a. Nature of scheme such as to create wealth or provide regular income in an indicative time horizon (short/ medium/ long term).

b. A brief about the investment objective (in a single line sentence) followed by kind of product in which investor is investing (Equity/Debt).

c. Level of risk, depicted by colour code boxes as under:
• Blue - principal at low risk.
• Yellow - principal at medium risk.
• Brown - principal at high risk.

Few samples of product label for different schemes:

1. Enumeration of Product label of an Fixed Maturity Plan (FMP)

• Regular fixed income for short term.
• Investment in Debt/Money Market Instrument/Govt. Securities.
• Low risk. (BLUE)

2. Enumeration of Product label of a Hybrid Scheme

Long term capital appreciation and current income.
• Investment in equity and equity related securities as well as fixed income
securities (debt and money market securities).
• Medium risk (YELLOW)

3. Enumeration of Product label of an Equity Scheme

• Long-term capital growth.
• Investment in equity and equity-related securities including equity derivatives of
top 200 companies by market capitalisation.
• High risk. (BROWN)

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