asset allocation of multi cap funds

SEBI circular dated 11th September, 2020 wherein the asset allocation for multi cap funds has been partially modified. Gist of circular follows

SEBI vide circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06,
2017, has issued guidelines regarding categorization and rationalization of
Mutual Fund Schemes.

  1. In this regard, in order to diversify the underlying investments of Multi Cap Funds across the large, mid and small cap companies and be true to label, it has been decided to partially modify the scheme characteristics of Multi Cap Fund at sr. no. 1 of point A of Annexure of the aforesaid circular as under:
    Minimum investment in equity & equity related instruments -75% of total assets in the following manner:
    o Minimum investment in equity & equity related instruments of large
    cap companies – 25% of total assets
    o Minimum investment in equity & equity related instruments of mid
    cap companies – 25% of total assets
    o Minimum investment in equity & equity related instruments of small
    cap companies – 25% of total assets
    2.1.All the existing Multi Cap Funds shall ensure compliance with the above provisions within one month from the date of publishing the next list of stocks by AMFI, i.e. January 2021.
  2. All other conditions specified in aforesaid circular dated October 06, 2017 shall remain unchanged.

Copy of SEBI circular can be accessed here

https://www.sebi.gov.in/legal/circulars/sep-2020/circular-on-asset-allocation-of-multi-cap-funds_47542.html

Leave a comment

Filed under securities laws

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s