SEBI has introduced a new fund category in the MF industry - flexi cap funds.
Flexi cap funds will be in line with erstwhile multi cap funds where fund manager can take equity exposure of at least 65% across market capitalisation.
SEBI’s decision has come after Mutual Fund Advisory Committee (MFAC) recommended the market regulator to give more flexibility to fund managers to maneuver across market capitalisation.
Earlier, SEBI had asked fund houses to invest at least 75% of the total corpus across market capitalisation with at least 25% exposure each to large cap, mid cap and small cap stocks.
The market regulator has given an option to fund houses to convert existing schemes into a flexi cap fund. However, fund houses will have to use flexi cap nomenclature in their scheme.
Meanwhile, Kotak MF has announced that it will change the name of Kotak Standard Multicap Fund to Kotak Standard Flexi Cap Fund subject to regulatory approval.
