As one of the market leaders in the mutual fund research and analytics in India, we at ICRA Analytics are proud to partner with the Asset Management Companies (AMCs) of SEBI registered mutual funds under the aegis of Association of Mutual Funds in India (AMFI) in implementing the new Risk-o-meter mandated by SEBI, vide SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/2020/197 dated October 5, 2020, based on recommendations made by the Mutual Fund Advisory Committee (MFAC).
The Risk-o-meter will now assess Mutual Funds at six levels of risk instead of five levels mandated previously. With this revision, the ‘Moderately Low’ risk category has been renamed as ‘Low to Moderate’ and a new risk category ‘Very High’ has been added. Under the revised regulatory guidelines, AMCs will have to update the Risk-o-meter on their respective websites within the first 10 days of every month. On March 31 each year, AMCs will disclose the number of times the risk level has changed over the year. The new Risk-o-meter will feature on AMC websites, Annual Reports and Abridged summary. It will also be updated on the AMFI website.
Under the guidance of the AMFI Working Committee, ICRA Analytics enabled the Mutual Fund industry risk score over 1700 funds. With our proven experience in mutual fund research spanning over two decades and prowess in IT and data processing, we were able to deliver results well within the regulatory timeline. The first batch of the dynamic Risk-o-meter was rolled out in early January 2021.
