Fund managers at domestic mutual funds are facing a tricky situation these days that could affect their performance. They are unable to buy more shares of Reliance IndustriesNSE 0.40 % (RIL) — one of the top performers on Dalal Street in the past three months — in their various equity schemes on account of the mandatory limits on holding a particular stock.
Sebi guidelines do not allow actively managed diversified equity schemes to own more than 10% in a single stock. After this limit is hit, the weight in a scheme can go up only to the extent of rise in share price.
