‘Mutual fund investments are subject to market risks’ to be printed in bold

SEBI vide SEBI/IMD/CIR No.2/191378 /2010 dated January 18, 2010 has directed all Asset Management Companies (“AMCs”) to print in bold, the various disclosures under the Advertisement Code. SEBI noted that the advertisements issued by the AMCs are generally lengthy and hence these disclosures are not bought to the attention of the investors. It is essential for the investors to be aware that the investments made in mutual funds are subjects to risk and that the scheme related documents should be read before investing. Thus in order to make these statements more prominent, the disclosures should be printed in bold.

A copy of the circular is available here.