Most mutual funds have almost completed ‘re-classification’ of their schemes as mandated by Sebi. While it is only ‘name change’ for some schemes, the ‘fundamental attributes’ have got changed for others. For example, HDFC Prudence Fund and HDFC Growth Fund will be merged to create a behemoth Balanced Advantage Fund with an AUM of Rs 37,723 crore (as on March 31) has suddenly become a ‘balanced advantage fund’.
This is a major attribute change; because the mandate will change from equity oriented hybrid fund (i.e. equity exposure capped between 65 per cent and 75 per cent) to ‘dynamic asset allocation fund’ (i.e. equity exposure can now move between 0 per cent to 100 per cent).
