The markets regulator has introduced a ‘flexi-cap category’ for mutual funds (MFs), which will be required to invest at least 65% of the corpus in equity but will have no restrictions on investing in large-, mid- or small-cap company stocks. After the circular was issued, the Association of Mutual Funds in India, or Amfi, asked Sebi to create a new flexi-cap category, which will not have such stipulations. The new MF category will be called flexi-cap schemes. Rather than introducing new funds, fund houses should convert existing multi-cap funds into flexi-cap. Sebi has also restored the pre-covid cut-off timings of MFs with effect from 9 November.

Source: Mint November 06, 2020 12:37 UTC