Mutual fund schemes renamed to align with the Sebi category norms

With Sebi's June deadline nearing, fund houses rename equity schemes to reflect category names and avoid investor confusion; more changes may follow

With the June-end deadline fast approaching, most fund houses have renamed their schemes to align them with the respective category. For instance, 'Bluechip Funds' of Axis, ICICI Prudential, and Canara Robeco have recently been renamed as Largecap Funds.

 

The changes have come on the direction of the Securities and Exchange Board of India (Sebi). In a communication dated March 27, the regulator asked fund houses to align the names of their schemes with the category to bring uniformity in the nomenclature of equity-oriented schemes. 

 

Changes in scheme names have also taken place in other categories, with the most renaming occurring in the large & midcap category. Bandhan Core Equity Fund, Axis Growth Opportunities Fund, Canara Robeco Emerging Equities, and DSP Equity Opportunities have been renamed as large and midcap funds.

 

Mutual fund scheme names may see further changes going forward. The regulator is actively reviewing scheme categorisation norms to make them more intuitive for investors, while ensuring all offerings remain 'true to label' to prevent mis-selling, Sebi executive director Manoj Kumar said at a recent event.