AMFI Market Cap Classification Expectations: For January - June 2024 period

5 Dec 2023 , 10:22 AM

Market Cap Classification Expectations: H1 CY24

 

As the semi-annual cut-off date (31-Dec-23) for market cap classification nears, we have populated the list of stocks that are likely to be re-classified (Large, Mid and Small caps) based on the AMFI’s six months average market capitalisation (since 1-Jul-23) criteria to categorise stocks. The re-classified list of Large, Mid and Small caps will be released by AMFI by the first week of January 2024. Equity oriented market cap classification focused schemes will have to re-align their holdings within one month of announcement based on discretion. 

Analysts of IIFL Capital Services have also assessed current positioning of potential reclassification candidates across the different market capitalisation oriented schemes vis-à-vis the weights in the key benchmarks. Few names that caught our attention based on current positioning in the market capitalisation focused schemes are IRFC, IOB, UNBK, LODHA and MAZDOCKS. The stocks are sorted based on current allocation in the respective category and weight in the benchmark. However re-positioning will be purely discretion based.

Background

Indian Mutual Fund – Categorization and Rationalization of Schemes – SEBI As per the Circular released by SEBI on 06-Oct-17, Indian Mutual Funds Schemes have to be strictly categorized into below baskets with a well-defined classification of Large Cap, Mid Cap and Small Cap stocks. 

The Schemes would be broadly classified in the following groups: 

a. Equity Schemes

b. Debt Schemes 

c. Hybrid Schemes 

d. Solution Oriented Schemes (Retirement Fund & Children’s Fund) 

e. Other Schemes (ETF & FoF)