Top multi-cap funds will turn ‘flexi cap’ to adhere to the new guidelines from market regulator Sebi. Two months ago, Sebi had laid down strict allocation norms for multi-cap funds. They were required to invest at least 25% each across large cap, mid cap and small cap segments. However, with most multi-cap funds taking a freewheeling approach to allocation based on the fund manager’s judgement, this was seen as a restrictive mandate. The new flexi-cap category introduced last fortnight has no such restrictions.
