Dear Sreekanth - Which type of MFs is likely to get Impacted (large cap/mid cap/multi cap/ ....) with the recent reclassification initiative by SEBI. Investors are confused as to what their action should be in this regard? Appreciate your insight in the matter.
Regards, Prakash
1 Answers
Dear Prakash,
I believe all types of fund categories are getting impacted one way or the other way, as most of the fund houses have multiple schemes under each fund category and they now have to re-shuffle them to meet SEBI's new norms.
The existing investors will have tough time to re-organize their MF portfolios. The best thing is to have a look at changes for the schemes that one has invested in, move out of the ones which does not suit you and your investment objectives and time-frame, remain invested in the funds which still match your requirements.
For ex: If you have invested in a pure Large cap fund and due to the changes, if it is now have been classified as Diversified equity fund then its better to come out of it during the prescribed period.
Related articles :
https://www.relakhs.com/best-mutual-fund-schemes-sebi-norms/
https://www.relakhs.com/mutual-fund-schemes-categorization-latest-guidelines/
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