The simplicity and ease of investing though mutual funds in the path of wealth creation is a well-known fact. Thanks to Securities and Exchange Board of India (Sebi), it will now become even more simpler than before. The regulator’s move on rationalising and categorising the open-ended mutual fund (MF) schemes will unfold a new era in the mutual funds industry. The steps taken by Sebi will result in MF schemes showing their true colour, thus making retail investors pick the right scheme as per their risk profile.
There will be clearly-defined and well-structured 16 new debt fund categories, 10 new equity categories and six hybrid categories of MFs. Making a comparison between schemes within the category will become much easier. Illustratively, if you intent to invest in a large-cap scheme, it will be true-blue large cap scheme and not have large exposure in mid-cap stocks.
