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.