Mumbai, June 27: In an effort to improve disclosure standards of mutual funds (MFs), Securities and Exchange Board of India has revised guidelines making it mandatory to provide information about returns on benchmark indices while showing performance of scheme in advertisement for same period. Considering the very short investment horizon of investors in cash / liquid / money market schemes, the mutual funds could provide information on simple annualised returns based on 15 day period while advertising returns for 30 day period, Sebi said in a communication on Thursday.

While advertising pay-out of dividends, MF should disclose that after the dividend payment, the net asset value would fall to the extent of the payout and distribution taxes, Sebi said.
The advertisements appearing on posters and hoardings should carry statement that "mutual fund investments are subject to market risks and investors should read the offer document carefully before making investments”.
Bureau Report