SEBI said it is desirable that different schemes launched by a mutual fund are clearly distinct in terms of asset allocation, and investment strategy. Further, there is a need to bring in uniformity in the characteristics of similar type of schemes launched by different mutual funds.
The move will ensure that an investor of mutual fund is able to evaluate the different options available, before taking an informed decision to invest in a scheme.
The circular will apply to all existing open ended schemes of all mutual funds; all such open ended schemes where SEBI has issued final observations but have not yet been launched; and all open-ended schemes in respect of which draft scheme documents have been filed with the regulator.
In order to ensure uniformity in respect of the investment universe for equity schemes, SEBI has decided to define large cap, mid cap and small cap. Top 100 companies in terms of market capitalisation will come under the large cap segment, while the 101st to 250th firms will be mid cap and 251st company onwards, in terms of market capitalisation, will be small cap.
( Source - PTI )