Sebi multicap fund rules: Nilesh Shah and Rajeev Thakkar's advice to investors
According to the new rules, a multi cap fund has to invest at least 25% each in large cap, mid cap and small cap stocks
Sebi on September 11 issued a circular guiding new portfolio allocation rules for multi cap mutual fund schemes where a multi cap fund has to invest at least 25% each in large cap, mid cap and small cap stocks. On Sunday evening, Sebi issued another circular to make clarifications regarding the initial circular. Sebi, in its clarification circular, allowed flexibility to mutual funds to comply with the new rules. It said, " Apart from rebalancing the portfolio, mutual fund houses can facilitate switch to other schemes by the unit holders or, merge their multi cap scheme with their large cap scheme or convert their multi cap scheme to another scheme category for an instance, large cum mid cap scheme.
Rajeev Thakkar, CIO, PPFAS Mutual Fund, managing the best performing multicap Fund - Parag Parikh Long Term Equity Fund also asked investors to stay calm. He wrote on twitter, "All will be fine, no knee jerk reactions please."
Parag Parikh Long Term Equity Fund apart from domestic equities invest over 28% in international equities. The scheme has outperformed its peers with 15% annualised returns both in 3-year SIP and 5-year SIP.
Here's Rajeev Thakkar's tweet:
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