Did you know that there are guard rails that the Securities and Exchange Board of India (Sebi) has put in place to protect you from the risks of over-exposure to a particular security, sector or group when you buy a mutual fund?
While the securities and sectors in which a fund invests in and the extent of exposure is the choice of the fund manager and driven by the investment objective of the scheme, there are broad investment guidelines that need to be followed to ensure a minimum level of diversification in the portfolio to manage the risks to the investor.
