The move is expected to force fund houses to merge schemes and reduce their number by half. In a circular on Friday, Sebi proposed that mutual fund schemes be divided into debt, equity, hybrid, solution-oriented (such as retirement and children’s funds) and “other” schemes. “It is desirable that different schemes launched by a mutual fund are clearly distinct in terms of asset allocation, investment strategy, etc. India has 42 fund houses managing around Rs20.4 trillion at the end of September in 2,000 mutual fund schemes. Mint had first reported on 11 September that if a fund is called a large-cap equity fund, then 80% of its assets will need to be invested in large-cap firms.

Source: Mint October 06, 2017 18:11 UTC