Following’s orders by Securities and Exchange Board of India (Sebi), all mutual funds have started demarcating their funds to ensure there is no duplication in mandate. The move has also ensured that the categorisation is consistent across different fund houses.
Before these changes, there were large variations in the definitions of what constituted, for example, a large cap or a mid-cap fund . Besides, several fund houses tended to have multiple schemes in each category, making it difficult for advisors or investors to compare schemes. But now that will no longer be a challenge and products are now more accessible.