MF recategorisation norms: Only some schemes will be impacted by Sebi rule

The new mutual fund re-categorisation norms will require you to take a closer look at your portfolio to assess the impact

Investors are currently receiving communiqués from their fund houses informing them about the changes being made to their funds to comply with the Securities and Exchange Board of India’s (Sebi) circular on categorisation of schemes that came in October 2017. While a few funds are being merged (less than 10 per cent of the total), many are being shunted from one category to another. In some cases, their fundamental attributes are being changed. Investors need to understand, preferably with the aid of a financial advisor, how drastic have been the changes in the character of their funds, and then decide