Sebi has directed asset management companies to include only one scheme in each fund category and restricted the investible universe of stocks for each. ET Wealth asked experts if this move would push the AMCs into a corner and limit a fund manager’s freedom.
Vidya Bala, Head, Mutual Fund Research, FundsIndia, says yes
Restrictions placed in the new classification norms could reduce alpha generation in some categories. Funds may be forced to exit quality stocks to abide by the norms on market cap holding. Hence, it both limits fund manager’s freedom and poses risk for investors. If we apply the norms today, the 250th stock in the NSE has a market cap Rs Rs 8,800 crore. Anything below this is termed as small-cap. This would res ..
