Sebi’s latest move towards Categorization and Rationalization of Mutual fund Schemes will make the comparing and selecting process of the right mutual fund scheme easier.
On 6th October 2017, for the mutual fund investor in the country, the rules of the game witnessed radical changes. The Securities and Exchange Board of India (SEBI) on that day issued a circular in order to rationalise and categorise open-ended mutual fund schemes in India. The fund houses were asked to undergo categorization and rationalization of mutual fund Schemes to take forward the ongoing growth of the industry to higher levels.
Overall, this move is expected to de-clutter the existing scene by simplifying investments in mutual fund for investors and thereby enhance better comparability within the schemes offered. The new standards will offer flexibility to investors on the nature of investments and risk exposure.
Let’s see why was there a need to bring about such changes and what exactly are those new standards set for the fund houses. An investor of mutual funds should be able to evaluate the different options available, before taking an informed decision to invest in a scheme. Therefore, it is desirable that different schemes launched by a Mutual fund are clearly distinct in terms of asset allocation, investment strategy etc. Further, there is a need to bring in uniformity in the characteristics of similar type of schemes launched by different Mutual funds.
In order to bring the desired uniformity in the practice, across mutual funds and to standardize the scheme categories and characteristics of each category, the issue was discussed in Mutual fund Advisory Committee.
Accordingly, it has been decided to categorize the MF schemes as given below:
i. Categories of Schemes
ii. Scheme Characteristics
iii. Type of Scheme
Bu hikaye Investors India dergisinin May 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Investors India dergisinin May 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Indians are Developing Weak Bones
In India, 1 out of 8 males and 1 out of 3 females suffer from osteoporosis, making India one of the largest affected countries in the world.
"The strategy behind the Tata India Innovation Fund centers on identifying companies that are driving transformative or incremental changes through innovation"
Yes, we certainly believe innovation is a powerful theme with immense potential for the coming years, and we are excited to bring it to our investors.
What is Hybrid Mutual Fund?
Hybrid Mutual Fund is a combination of more than one type of fund. While they invest in shares of companies listed on the exchange, like equity funds.
Should you invest in dynamic bond funds?
Dynamic bond funds have delivered a category average return of 8.68 per cent over the past year, making them the fourth best-performing category, following long-duration funds, constant maturity gilt funds, and gilt funds. With interest rate cuts yet to begin, these funds remain a viable option for investors seeking to benefit from possible rate reductions.
The Multicap Solution to India's MultiDimensional Growth
India is entering a transformative era of economic growth, backed by a unique combination of demographic strength, infrastructure development, and rising global prominence.
The Long-Term Benefit of Investing in Children's Future
A child is the most treasured part of any parent's life, and naturally, we want to give them the best of what the world has to offer. This often means not only ensuring we can meet their needs but also nurturing them to pursue their unique aspirations. Each child has their own dreams and challenges, making the early years critical as they lay the foundation for a healthy and fulfilling future.
ASK THE EXPERT
Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida
How to Naturally Reverse Fatty Liver Disease
The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?
