SEBI has clarified that asset allocation norms on open-ended debt schemes will be applicable on the 90% of the total assets.
For instance, corporate bond funds will have to invest 80% of total assets in highest rated bonds issued by corporates according to the SEBI scheme recategorization. With all such schemes having to keep 10% of the total assets in liquid assets, corporate bond funds will now have to invest at 72% (80% of the remaining 90% assets) of the total assets in highest rated bonds issued by corporates.
Last year, SEBI had asked fund houses to invest at least 10% of the total assets of all open ended debt schemes except overnight, liquid and gilt funds in liquid assets like cash, government securities, t-bills and repo on g-sec.
This will come into effect from December 1, 2021.
Here is the new asset allocation norms:
|
Debt schemes |
|
|
Fund Name |
Description |
|
Corporate bond fund |
Invests 72% of total assets in highest rated bonds issued by corporates |
|
Credit risk fund |
Invests 58.5% of its assets in low rated securities |
|
Banking and PSU fund |
Invests 72% of the total assets in debt instruments issued by banks, public sector undertakings, public financial institutions |
|
Floater fund |
Invests 58.5% of total assets in floating rate instruments issued by banks |
