There is a concern these days for Indian mutual fund (MF) investors. Over the past few days, MFs in India have acted on the Securities and Exchange Board of India’s (Sebi’s) directive on rationalisation and categorisation of their schemes and as a result, they have been changing the names of schemes, merging two or more schemes in the similar category into one and even changing investment attributes of the scheme.
E-mails from fund houses to the investors intimating them about the changes in the scheme have left many of them perplexed as to what does it mean and what do they need to do? While the exercise is still on and industry insiders say that it will take almost a month for the entire process of name change and scheme merger to be over, experts say investors should wait for the process to complete before digging into their portfolio of schemes for any change in their asset allocation.
“There is no need to worry or rush for change in investments. The change process is currently on and will continue for few more weeks. Once the industry is through with the changes, investors can look at all the schemes invested into and decide whether there is a need to move out from any scheme,” said Surya Bhatia, founder, Asset Managers,
a Delhi-based investment advisory firm.
