The SEBI’s diktat to standardise MF schemes has ironically left investors more confused
Over the past month or so, seemingly savvy mutual fund investors have been flooded with constant communiques from fund houses, informing them of changes or mergers in their schemes. The confusion is thanks to SEBI’s circular issued last year that seeks to standardise schemes across fund houses.
For the past six months, fund houses have been busy re-jigging their schemes, to conform to the regulator’s new norms. The ball has now been lobbed into the investors’ court, who are left to decode the elaborate and complex shake-up in mutual fund schemes.
Running over some of the schemes of top fund houses suggests that the nightmare has just begun for investors. They have to pore over numerous mandates to understand the changes; in some cases, sweeping changes in mandates and portfolio have made past performance patchy or irrelevant.