 "Mutual funds, Stock markets, liquidity")
The Securities and Exchange Board of India’s (Sebi’s) September 11 circular stipulating that multi-cap funds must invest 25 per cent each in large-, mid- and small-cap stocks has sparked a search for alternatives. One category that many financial advi-sers are suggesting is focused funds.
Like multi-cap funds in their earlier avatar, focused funds are also free to invest across market caps without any restriction. However, Sebi has capped the number of stocks they can hold at 30. “The idea is that the fund manager should only include his highest-conviction stocks in this fund,” says Taher Badshah, chief investment officer-equity, Invesco
