AMFI welcomes SEBI clarification on asset allocation to multicap schemes

AMFI welcomes SEBI’s clarification, which is extremely important for the orderly functioning of the market, as the street had started anticipating huge flows in small and mid-cap stocks over next couple of months from the multi-cap schemes.

Sep 14, 2020 08:09 IST India Infoline News Service

Sebi
Welcoming SEBI’s initiative on a Sunday evening, to issue a clarification regarding asset allocation to multi-cap schemes of Mutual Funds, Association of Mutual Funds in India (AMFI) today said the Mutual Fund Industry is committed to following SEBI’s regulations in a letter as well as spirit, and in this matter, would abide by getting the scheme’s portfolio to reflect the true nature of the scheme.

AMFI welcomes SEBI’s clarification, which is extremely important for the orderly functioning of the market, as the street had started anticipating huge flows in small and mid-cap stocks over next couple of months from the multi-cap schemes.

Mutual Fund Industry endeavours to optimize risk-adjusted returns for the unitholders. Given the flexibility now offered by  SEBI to facilitate a switch to other schemes or merger of schemes, appropriate portfolio changes will accordingly happen in an orderly fashion.

AMFI is grateful to SEBI for its open-door policy for a dialogue.  AMFI will gather feedback from members and revert for non-disruptive execution of multi-cap funds portfolio balancing.

AMFI looks forward to working closely with SEBI to consistently improve investor communication, to bring about increased transparency and offering true-to-label products.

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