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Sebi multicap fund rules: ‘Expect healthy returns in mid- and small-cap funds'

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multi cap mutual funds will have to invest at least 75% in equities. At present the minimum equity allocation must be 65%. Also, going forward, these schemes will have to invest at least 25% each in large cap, mid cap and small cap stocks.

Currently there is no such allocation restriction and fund managers can invest across the market cap as per their own choice.

Mutual funds have been told to abide by the new rules by January end next year. While all these changes happen in multi cap funds, the investors of mid and small cap funds tend to benefit indirectly.

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United States
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