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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:

  • Low Risk
  • Low to Moderate Risk
  • Moderate Risk
  • Moderately High Risk
  • High Risk
  • Very High Risk

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.