Mutual fund scheme categorization standardizes categories and mandates reclassification and compliance timelines for asset managers. Mutual funds must classify open-ended schemes into standardized groups (Equity, Debt, Hybrid, Solution Oriented, Other) with uniform descriptive types and specified asset-allocation or strategy thresholds; solution oriented schemes carry mandated lock-ins. SEBI defines large, mid and small cap by ranked full market capitalization and requires AMFI to publish a semi annual stock list that funds must use and rebalance to within one month. Only one scheme per category is permitted subject to limited exceptions; AMCs must submit reclassification proposals with trustee approval and implement mergers, wind-ups or fundamental attribute changes within prescribed compliance timelines.
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Mutual fund scheme categorization standardizes categories and mandates reclassification and compliance timelines for asset managers.
Mutual funds must classify open-ended schemes into standardized groups (Equity, Debt, Hybrid, Solution Oriented, Other) with uniform descriptive types and specified asset-allocation or strategy thresholds; solution oriented schemes carry mandated lock-ins. SEBI defines large, mid and small cap by ranked full market capitalization and requires AMFI to publish a semi annual stock list that funds must use and rebalance to within one month. Only one scheme per category is permitted subject to limited exceptions; AMCs must submit reclassification proposals with trustee approval and implement mergers, wind-ups or fundamental attribute changes within prescribed compliance timelines.
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