Recent Change 2017 in Categorization of Mutual Fund By SEBI

In October 2017 SEBI announced the new rule of categorization:
1. 5 key group      i. Equity 9 types     ii. Debt 17 types
   v . Others  (Fund of funds and index products)
   iii. Hybrid 7 types    iv. Solution oriented
One scheme per category and no duplication with similar objectives or portfolios.
36 max category the SEBI has fixed now New norm is not applicable to close end scheme.
4. Max limit of numbers of funds by fund house and restrictions in name
2. As on May 2018 total number of Mutual Funds are 2043 and Plan option and variants 9680 5.  There is " solution oriented " funds namely retirement fund and children's fund
8. Mid cap next 150 stocks  (so to stay away top 100 ( large cap) and small caps ( below the top 250)) and invest at least 65% of there portfolio in the 150 stocks and make up the emerging blue chips in the market hence the can now devote the remaining 35% to either mid or large cap.
7. Large : Top 100 stocks  (80% exposure to top 100 stocks by market cap.) 9. Small cap below top 250 stocks. 10. There are 41 AMCs as on May 2018, total number of Schemes Open ended schemes 840 and close ended 1060 and 43 interval.
13. So investor now need to know
11. Debt fund category as low, short,medium and long depending duration limits. 12. AMCs now change in        i.  Scheme name        ii.  Scheme type       iii . Fundamental attributes       iv.  Merge between scheme        i. New category       ii. New assets allocation      iii. Benchmark
      iv. Objects 13. Debt fund category consisting 16 types        i. Portfolio duration 9 types        ii. Kind of debt security 3 types       iii. Credit risk       Kind 3 types        a) Corporate Bond         b) Guild         c)  Banking /PSU       Credit risk has a category named credit risk fund.

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