Almost all mutual funds (MFs) disclose full details about stocks and sectors. But if you compare their fact sheets more closely, you will find additional information, such as financial ratios or other performance indicators. The problem, however, is that not all fact sheets disclose all such information. For instance, one fact sheet may give you a Sharpe ratio, the second may give you turnover ratio, and the third modified duration.

Sebi mandate: The Securities and Exchange Board of India (Sebi) mandates fund houses to disclose various aspects of their portfolio regularly. Portfolios are mandated to be disclosed twice a year in a pre-specified format in which details, including modified duration and portfolio turnover, are supposed to be given.

Amfi proposal:Since most fund houses disclose portfolios every month, the industry body, Association of Mutual Funds of India (Amfi) felt there should be some kind standardization. The Amfi committee, set up for this purpose, has proposed several aspects of the schemes and fund houses that should be disclosed. Some of these are mandatory, some optional in a fixed format, and some optional in any format.

The road ahead: Though Amfi sent its recommendation to all fund houses in October 2007, not much progress has been made. As Amfi is a trade body, its recommendations are not mandatory on funds, unless Sebi says they are compulsory.