HDFC MF has converted its multi cap fund ‘HDFC Equity Fund’ to ‘HDFC Flexi Cap Fund’. This will be effective from January 29, 2021.
This comes after SEBI put a strict mandate for multi cap funds to invest at least 75% of the total corpus across market capitalisation with at least 25% exposure each in large cap, mid cap and small cap stocks. Later, in its circular dated November 6, 2020, SEBI introduced a new category - flexi cap funds. In case of flexi cap funds, the fund manager has the freedom to take equity exposure of at least 65% across market capitalisation.
Moreover, HDFC MF has said in a notice that HDFC Flexi Cap Fund can invest upto 35% of its net assets in foreign securities.
As of December 23, AUM of HDFC Equity Fund stood at Rs 21,400 crore. The fund is managed by Prashant Jain, ED and CIO of HDFC AMC.
Recently, Kotak MF, Axis MF and Parag Parikh MF have also converted their multi cap funds to flexi cap funds.
