Motilal Oswal Multicap 35 Fund to be reclassified as 'flexi cap fund'1 min read . Updated: 12 Nov 2020, 10:12 AM IST
Motilal Oswal Multicap 35 Fund was launched in April 2014 and manages assets worth ₹11,015 crore.
Motilal Oswal AMC has announced to reclassify Motilal Oswal Multicap 35 Fund from the multi cap fund category to the 'flexi cap' fund category. The proposed name of the scheme could be ‘Motilal Oswal Flexi Cap 35 Fund’, as per a communication by the fund house. "There would be no change in the way the fund is being managed currently and Akash Singhania will continue to be the fund manager as well," says the mutual fund house. Motilal Oswal Multicap 35 Fund was launched in April 2014 and manages assets worth ₹11,015 crore.
On November 6, Sebi has introduced a ‘flexi cap category’ for mutual funds, which will be required to invest at least 65% of the corpus in equity but will have no restrictions on investing in large-, mid- or small-cap company stocks.
In September, the Sebi came up with new rules for multi-cap funds, which are required to invest at least 25% of the corpus in large-, mid- and small-caps. It raised concerns among industry players over the possibility of existing multi-cap funds being forced to buy mid- and small-cap stocks despite these segments not having the liquidity to absorb large flows from mutual funds. After the circular was issued, the Amfi, asked Sebi to create a new flexi-cap category, which will not have such stipulations.
“Investors would rely more on the fund managers capabilities and decisions to decide market cap bias. This also would give flexibility to managers to make investment decisions basis their conviction on the companies irrespective of their market caps. Since this a new category which is getting created, most multi cap funds may get their schemes reclassified in to flexi cap category. Further, multicap category is an additional option available to managers as product option which will be managed as per market cap ceilings prescribed by SEBI," says Akhil Chaturvedi - Associate Director & Head of Sales, Motilal Oswal Asset Management Company.