AMFI to Sebi: Multi Cap funds should be reclassified as 'Flexi cap' funds

AMFI reportedly said, 'Flexi cap' funds would carry the requirement of minimum 65% in equity assets.

Sep 16, 2020 04:09 IST India Infoline News Service

Sebi
It is being known that the Association of Mutual Funds in India (AMFI) has written to market regulator Sebi for reclassifying multi-cap funds to 'Flexi Cap' funds.

Sources told CNBC-TV18 that, AMFI writes saying that reclassification to 'Flexi cap' would not cause any disruption; pre-empt potential market volatility.

AMFI reportedly said, 'Flexi cap' funds would carry the requirement of minimum 65% in equity assets. At present, multi-cap funds manage around Rs1.46 lakh cr AUM spread across 35 schemes and holds more than 95 lakh folios.

The mutual fund body further reportedly said to introduce a new category with characteristics as specified by Sebi which is minimum 25% in large, mid & small-cap fund.

For new large, mid & small cap fund category, the AMFI tells market watchdog that they should reportedly have minimum requirements which are in-line with benchmarks.

Currently, there is 13% weightage of midcaps and 6% weightage of small caps on benchmark NSE 500 index. 

Related Story