Colour coding of funds would cease from July 1, 2015, and will be replaced by a 'riskometer'.
As of now, fund products are labeled a colour according to risk.
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Blue: Debt-oriented schemes, comparatively lower in risk.
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Yellow: Diversified/blended schemes, with a mix of debt and equity into the portfolio construct. This is to indicate moderate risk.
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Brown: Equity-oriented schemes. This denotes high risk.
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Brown: Static allocation domestic feeder funds which have a predominant equity allocation.
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Yellow: Static allocation domestic feeder funds which have a predominant debt allocation.
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Brown: Active allocation domestic feeder funds where the allocation is based on a model or parameter.
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Brown: Foreign feeder funds.
Going ahead, the 'riskometer' containing five levels of risks and the risk level of a scheme will be displayed through a speedometer-like mechanism.
The five risk levels would be low, moderately low, moderate, moderately high and high.
The guidelines would be effective from July 1, 2015, for all existing and forthcoming schemes, the Securities and Exchange Board of India, or SEBI, said in a circular. "The depiction of risk using colour codes would be replaced by pictorial meter named 'riskometer' and this meter would appropriately depict the level of risk in any specific scheme," it added.
