10 Questions
What was the main modification in the way mutual funds present risk levels as mentioned in the text?
Replacing colour codes with a pictoral-meter named 'Riskometer'
What is the significance of the 'Riskometer' in evaluating mutual fund schemes?
It simplifies the presentation of risk levels, but should not be the sole factor for making investment decisions
How frequently should the risk-o-meter be evaluated for mutual fund schemes?
Monthly
What is the risk score assigned to commodities with an annualized volatility of 20% as per SEBI's directive?
6 (Very High)
What does an investor need to consider if they are unable to conduct thorough research on mutual fund schemes?
Seek guidance from a mutual fund distributor or registered investment adviser
What change did SEBI make in April 2015 to the system of product labelling in mutual funds?
Increased the level of risk categories from three to five
What does the colour 'Blue' represent in terms of risk level in mutual fund schemes?
Low risk
What should investors do if they are unclear about the suitability of a product?
Consult their financial advisers
In the context of mutual fund product labelling, what does the term 'Moderately High' indicate?
Moderately high risk
What was the effective date of the circular mentioned that candidates are advised to read?
December 1, 2021
Test your knowledge on investment schemes by identifying the nature of scheme, investment objective, type of product, and risk level associated with different colour codes.
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