Sebi reshapes mutual fund landscape with major recategorisation. The regulator has introduced sweeping changes to equity, debt, and hybrid fund structures, replacing the 2017 framework. Fund houses can now offer both value and contra funds simultaneously, provided portfolio overlap does not exceed 50 percent. New lifecycle funds have been created as goal-based investment options with tenures ranging from 5 to 30 years, featuring glide-path strategies that gradually reduce equity exposure as maturity approaches. Solution-oriented schemes like retirement and children's funds have been discontinued immediately, with existing schemes required to merge with similar alternatives. The overhaul expands residual allocations to include gold, silver, and InvITs, while arbitrage fund debt exposure is now restricted to short-term government securities.
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