In order to give more Flexibility to the Mutual Funds and taking into account the recommendations of Mutual Fund Advisory Committee (MFAC), SEBI has made updates to circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017, providing guidelines regarding categorization and rationalization of Mutual Fund Schemes.
A new category named “Flexi Cap Fund” under Equity Schemes will be available with the following scheme characteristics.
| Category of Scheme | Scheme Characteristics | Type of scheme (uniform description of scheme) |
|---|---|---|
| Flexi Cap Fund | Minimum investment in equity & equity related instruments : 65% of total assets | An open ended dynamic equity scheme investing across large cap, mid cap, small cap stocks |
- The AMC shall ensure that a suitable benchmark is adopted for the Flexi Cap Fund.
- For easy identification by investors and in order to bring uniformity in names of schemes for a particular category across Mutual Funds, the scheme name shall be the same as the scheme category.
- Mutual Funds have the option to convert an existing scheme into a Flexi Cap Fund subject to compliance with the requirement for change in fundamental attributes of the scheme in terms of Regulation 18(15A) of SEBI (Mutual Funds) Regulations, 1996.
- Scheme under the aforesaid mentioned new category can be launched with effect from the date of this circular.
