Welcoming SEBI’s initiative on a Sunday evening to issue clarification regarding asset allocation to multi-cap schemes of mutual funds, AMFI said the mutual fund industry is committed to following SEBI’s regulations in letter as well as spirit.
In this context, AMFI will ensure that all the members abide by getting the scheme’s portfolio to reflect the true nature of the scheme.
Further AMFI said that it is grateful to SEBI for its open door policy for a dialogue. “AMFI will gather feedback from members and revert for non-disruptive execution of multi cap funds portfolio balancing,” said AMFI in the press release.
“AMFI welcomes SEBI’s clarification, which is extremely important for the orderly functioning of the market, as street had started anticipating huge flows in small and mid-cap stocks over next couple of months from the multi cap schemes,” AMFI added.
The trade body said that mutual fund industry's endeavour is to optimize risk adjusted returns for the unitholders. Given the flexibility now offered by SEBI to facilitate switch to other schemes or merger of schemes, appropriate portfolio changes will accordingly happen in an orderly fashion. AMFI looks forward to working closely with SEBI to consistently improve investor communication, to bring about increased transparency and offering true-to-label products, said AMFI.
