Sebi’s re-categorisation norms for mutual funds is going to make life difficult for investors, say some mutual fund advisors. According to these advisors, though re-categorisation is supposed to help investors to understand mutual funds easily, change in attributes of some schemes, merger of some schemes, and lack of performance record, etc. may make selection of schemes difficult for new investors.
With 16 new debt fund categories, 10 new equity categories and six hybrid categories, investors have a vast universe to choose from. However, many schemes will not have a performance record, which will make the evaluation difficult.
