Mutual Funds Colour Coding:- All you need to know
SEBI has created new guidelines and colour coding for all types
of Mutual Funds .
there are only three colours Brown,Yellow,Blue. From June onwards it will be Implimented.
there are only three colours Brown,Yellow,Blue. From June onwards it will be Implimented.
Blue Colour
Indicates Less Risk. That means a retired person can Invest in these Products
Eg:Gilt Funds,Debt Funds,Fixed Maturity Plan,Income Fund, Liquid funds these will carry BLUE color
Eg:Gilt Funds,Debt Funds,Fixed Maturity Plan,Income Fund, Liquid funds these will carry BLUE color
Yellow Colour will Indicate Meduim Risk Associated
with that product
Eg:Hybrid Funds like Monthly Income Plan (MIP),Balanced Funds etc....
Brown Colour will Indicate High Risk and not recommended for Retired Persons
Eg: Equity Oriented, Sectorial Funds, Index fund, large-cap fund, small-cap funds
Below documents and Images were downloaded from sebi website please refer to it, if problem with viewing documents/images click here
Eg:Hybrid Funds like Monthly Income Plan (MIP),Balanced Funds etc....
Brown Colour will Indicate High Risk and not recommended for Retired Persons
Eg: Equity Oriented, Sectorial Funds, Index fund, large-cap fund, small-cap funds
Below documents and Images were downloaded from sebi website please refer to it, if problem with viewing documents/images click here
But I think Only three Colours will not going to
help.. this is really Insane. Lets look at it, Index fund has less risk than the
Sectorial funds but these will be considered as the Same risk(Brown), and Hybrid Funds
where there is 70% equity and there are some funds where there is only 10% equity
these are also rated as same(Yellow)..
If there were more colours it would have been better but we can’t do anything...As a Financial Planner what I would request is Please Do your research well or Consult your Financial Adviser, these colours are just a glimpse and not show us the exact picture.
If there were more colours it would have been better but we can’t do anything...As a Financial Planner what I would request is Please Do your research well or Consult your Financial Adviser, these colours are just a glimpse and not show us the exact picture.
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Regards,
Regards,
Abdul Zelani.