Seeking to rationalise the choice of mutual fund schemes for investors and at the same time to ensure standardization in how fund houses define scheme categories, the capital markets regulator issued a circular on 6 October, instructing fund houses on how they should classify their schemes.
The Securities and Exchange Board of India (Sebi) has asked fund houses to respond individually by 6 December 2017 with a plan of action as to how they will consolidate their existing mutual fund schemes. Once the fund houses respond, Sebi will then individually examine each fund house’s plan and respond to them accordingly.
Once Sebi approves these, fund houses would have a window of 3 months to carry out the necessary changes in their product bouquet. This means that by mid-2018, the mutual fund industry will look very different. Here are five ways your life, as a mutual fund investor, is set to change.
