Investors should also refer to the product labelling of the scheme. All the mutual funds are required to label their schemes on the following parameters:
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 a pictorial meter (known as a riskometer) as under:
However, investors should consult their financial advisers if they are not clear about the suitability of the product.
Product label is disclosed in:
a. Front page of initial offering application forms, Key Information Memorandum (KIM) and Scheme Information Documents (SIDs).
b. Scheme advertisements.