7 years, 2 months ago

Consider exiting if re-categorization changes the mandate of the schemes you are invested in

Can you please explain the recent mutual fund re-categorization rules? —Ayushi Singh A few months back, market regulator Securities and Exchange Board of India stipulated a set of rules to streamline fund categories, and asked mutual fund companies to comply with these in the next few months. One, Sebi has listed a set of categories and has asked mutual funds to identify which category each of their fund belongs to. Either way, if that happens, investors would need to weigh their options about staying invested in the fund. If your SIPs are running on a new-age online mutual fund platform, increasing the SIP amount is likely to be just a matter of logging into your account and changing the monthly amount.

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