The Securities and Exchange Board of India has replaced the mandatory colour codes with a 'riskometer' that will help investors to understand better the risks involved in mutual fund investments. In a circular issued from Mumbai today, SEBI has said that the existing colour codes would be replaced by pictorial meter named "riskometer" and this meter would appropriately depict the level of risk in any specific scheme.In the new move, SEBI has increased the risk category from three to five levels namely low, moderately low, moderate, moderately high and high. It further said that all funds may 'product label' their schemes on the basis of the best practice guidelines issued by Association of Mutual Funds in India in this regard. The guidelines would be effective from 1st July, 2015, for all existing and forthcoming schemes.