Securities Exchange Board of India (SEBI) on its Circular Dated October 6, 2017 had come up with this circular on Mutual Funds Scheme Categorisation and Rationalisation to have a Uniform Name and Categorisation on the same type of schemes offered by different Asset Management Companies (AMC).
Mutual Funds have close to 1600+ Schemes in different Category of Mutual Funds. It was very confusing for an Investor to Understand the Objective of the Scheme as many Asset Management Companies have multiple schemes with similar objective and Investment Strategy.
In order to Rationalise the Objective and Name of the scheme SEBI has defined Certain terms like what is a Large Cap Fund, Small Cap Fund, Mid Cap Fund, Large and Mid Cap Fund, etc…
Mutual Funds are Broadly Classified into the Following Groups
Each Type of Scheme is Further Classified in to the Following.
Since these Changes are Implemented by all the Mutual Fund Companies you will see the Names of the Schemes Changing. Also there are few schemes which are merging with an existing scheme.
This move by SEBI is a Welcoming move. It helps the Investor to select the funds based on his needs and his risk profile. Similar Schemes in each AMC have been merged.
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