Risk-o-meter must now be recalculated monthly and disclosed within 10 days of month-end
Every scheme's Risk-o-meter must be re-evaluated every month, not just periodically, and published alongside the portfolio disclosure on both the AMC's and AMFI's websites within 10 calendar days of month-end. AMCs must also publish a year-on-year table in the Annual Report showing how many times each scheme's risk level changed.
“Risk-o-meter shall be evaluated on a monthly basis and Mutual Funds/AMCs shall disclose the Risk-o-meter along with portfolio disclosure for all their schemes on their respective website and on AMFI website within 10 calendar days from the close of each month. ... Mutual Funds shall disclose the risk level of schemes as on March 31 of every year, along with number of times the risk level has changed over the year, on their website and AMFI website.”
If a client notices their small-cap fund's Risk-o-meter has shifted bands mid-year, the distributor can point to the AMC's monthly-updated Risk-o-meter (published on the website within 10 days of month-end) as the current official reading, and to the scheme's Annual Report table showing exactly how many times the risk level changed that year.
Illustrative scenario written by Northspread — not text from the circular itself.