Market regulator Sebi on Friday asked asset management companies (AMCs) to disclose information ratio (IR), which is used to measure risk adjusted return of mutual fund schemes, on its website on a daily basis.

“Considering the significance of volatility of performance in determining the suitability of MF schemes, Information Ratio (IR) is an established financial ratio to measure the RAR of any scheme portfolio. It is often used as a measure of a portfolio managers level of skill and ability to generate excess returns, relative to a benchmark and also attempts to identify the consistency of the performance by incorporating standard deviation/risk factor into the calculation,” said Sebi.

Earlier the market regulator mandated filing of periodic information regarding schemes performance by AMCs. Apart from this, the appropriate disclosures pertaining to scheme returns were also made voluntarily in various documents or disclosures by AMCs.