Are you wondering why you are getting name change and category change emails from your fund house? Last month, based on the instructions of the Securities and Exchange Board of India (Sebi), mutual fund houses recategorised their schemes. What does mutual fund reclassification mean for you and how does it impact you?
Not all mutual funds have changed. “Funds that have seen changes can be classified into three levels — funds that simply changed the name; funds that have changed the category; and funds that have wound up and merged with another fund,” said Srikanth Meenakshi, founder and chief executive officer, FundsIndia.com.
According to Meenakshi, of all the funds that have seen changes, around 50%-60% have only changed names. “For instance, ICICI Prudential Balanced Fund and is now ICICI Prudential Equity and Debt Fund. The characteristic remains the same,” he said.
