Sebi has tweaked the portfolio allocation rules for multi cap equity mutual fund schemes on Friday. According to the new rules, multi cap mutual funds will have to invest at least 75% in equities. Also, going forward, these schemes will have to invest at least 25% each in large cap, mid cap and small cap stocks. While all these changes happen in multi cap funds, the investors of mid and small cap funds tend to benefit indirectly. He adds, “This will also lead to more inflows in mid cap and small cap funds now."

Source: Mint September 12, 2020 03:26 UTC