Now you will immediately know how much risk is there in which mutual fund scheme, SEBI has brought a great proposal

Although mutual funds give decent returns to their investors, still a large number of investors are worried about their capital. People are afraid that their investment may be in a high-risk fund. Now SEBI is going to solve this problem of investors. Market regulator SEBI has proposed color coding to better display the level of risk of mutual fund schemes. With this, investors will be able to easily know how much risk is there in which mutual fund scheme.

You can also invest a small amount every month in mutual funds through SIP. If you want, you can also use the annual step-up. In this, the monthly SIP amount has to be increased by a certain percentage every year. Generally, mutual funds give an average annual return of 12 percent in the long term.

Ask for suggestions from people.

SEBI has said that funds should display the level of risk in a way that customers can easily understand. According to SEBI’s proposal, there will be color coding for 6 levels of risk. According to this, green color will show low risk and red color will show very high risk. If there is any change in the risk level of a mutual fund later, then the investor will be informed about it immediately. This information will be given through SMS or e-mail. This will keep the investor informed about the risk level in his mutual fund from time to time. SEBI has sought suggestions from people on this proposal by October 18.

These will be the 6 levels of risk

• Green: low risk
• Light green-yellow: Low to moderate risk
• Bright yellow: Medium risk
• Light brown: medium-high risk
• Dark orange: high risk
• Red: very high risk