British consumers have got used to seeing traffic light colour coding on packaged food in the shops. A green spot is supposed to entice customers by indicating the food has less fat, sugar or salt, while a red one is meant to warn you away from the most delectable junk foods. It may work on the pages of behavioral economics textbooks but it’s been a lot less effective for gluttonous shoppers in the real world.
Nevertheless, the Securities and Exchange Board of India (Sebi) has decided to apply the same concept to mutual funds. Read more