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Fund schemes to carry product labeling now

Sebi has mandated all fund companies to label their schemes with 3 distinct colours

Effective July 1, 2013, all the mutual fund schemes will have a clear labeling of asset allocation and the risk associated with them in the form of separate colour coding. Just like vegetarian and non vegetarian products in restaurants are marked in green and red, all the schemes will carry a different colour code.

Schemes with the least risk, such as FMPs, will sport the colour blue while yellow will be for those which carry medium risk, such as hybrid schemes.
Equity schemes, which are perceived to carry the highest risk, will have the colour brown marked against them.

So, the mutual fund schemes will be labeled in the following manner:

*Fixed Maturity Plans

Investors can find these "product labels" in the front pages of offer documents, key information memorandum (KIM), scheme information documents (SID), common application forms and scheme advertisements.