SEBI wants fund houses to do away with the word ‘opportunities’. In fact, the market regulator has reportedly asked fund houses not to use the word ‘opportunities’ in their large cap and multi cap funds. This is to reduce confusion among investors and expedite scheme consolidation.
Currently, many fund houses – Franklin Templeton India, HSBC, Tata, Kotak, UTI, Reliance, DSP BlackRock, Mirae, and Edelweiss are using the word ‘opportunities’ in their large cap funds and multi cap funds.
“SEBI has not approved our large cap fund as we have ‘opportunities’ in the nomenclature. Hence, we have changed the name,” said the CEO of one such fund house.
However, the Sales Head of a large fund house told Cafemutual that SEBI does not have issue with the use of ‘opportunities’ in mid cap and small cap funds. “We have a mid cap fund with the name ‘opportunities’ and the market regulator has approved it.”
A few days back, SEBI has reportedly asked fund houses to do away with the word ‘prudence’ from their balanced fund. Following this, three of five fund houses have changed the name of their prudence fund to aggressive hybrid fund.
