3-Point Analysis | Will new Sebi norms make multi-cap schemes more true-to-label?Page Visited: 15
Moneycontrol’s Sakshi Batra does a 3 Point Analysis to find out the impact of Sebi’s circular on rebalancing multi-cap funds
On September 11, the Securities and Exchange Board of India (SEBI) tweaked the rules for investment allocation by multi-cap equity funds, leading to a whole lot of frenzy in the mutual fund industry.
Sebi tweaked its October 2017 circular, mandating multi-cap funds to invest at least 25 percent each in smallcaps, midcaps and largecap stocks, leaving the remaining 25 percent to their discretion.
If this is implemented, it will lead to huge churning of mutual fund holdings: multi-cap schemes selling large-caps and buying mid- and small-caps. What will be the impact of these new norms? And what should investors do now? Let’s find out in this edition of 3 Point Analysis with Sakshi Batra.
First Published on Sep 14, 2020 09:24 pm