Big mutual fund revamp soon?

Summary: SEBI’s proposed revamp of mutual fund categories could shake up how funds are launched, managed and diversified. From second schemes in a category to overlap limits and lifecycle funds, here’s what the regulator wants to change and what it could mean for investors like you.

Summary: SEBI’s proposed revamp of mutual fund categories could shake up how funds are launched, managed and diversified. From second schemes in a category to overlap limits and lifecycle funds, here’s what the regulator wants to change and what it could mean for investors like you. The Securities and Exchange Board of India (SEBI) has proposed a revamp of mutual fund categorisation. First introduced in 2017, the existing framework brought order to a cluttered landscape. But with mutual fund assets growing, retail participation soaring and new asset classes gaining traction, SEBI now wants to update the rules for today’s market realities. Streamlining scheme launches A major proposal is to allow fund houses to launch a second fund within an existing category, currently restricted to one fund per category. This option would be limited to fund houses with a fund above Rs 50,000 crore assets under manage