SEBI Issued Circular about the asset allocation in the Multi-Cap Scheme.

2. NAME OF CIRCULAR: ASSET
ALLOCATION OF MULTI CAP FUNDS
CIRCULAR DATE : 11-09-2020

3. OBJECTIVE:
-TRUE TO LABEL SCHEME
-COMPARISONS WITH AN APPROPRIATE BENCHMARK

4. NEED:
THE REGULATORY BODY (SEBI) OBSERVED THAT THERE IS FOUL PLAY IN THE ASSET ALLOCATION OF SOME
MULTI-CAP SCHEMES. THESE SCHEMES ARE PURELY FOCUSED ON LARGE-CAP, ON ANOTHER SIDE ZERO IN
THE SMALL-CAP OR VERY LITTLE PORTION.
BASICALLY, THESE FUND SCHEMES ARE LARGE-CAP FUND SCHEMES.

5. MEANING OF MULTI CAP FUND
- AN OPEN ENDING EQUITY SCHEME INVESTING ACROSS LARGE, MID AND CAP STOCK.
- A FUND SCHEME, WHERE THE MINIMUM INVESTMENT IN EQUITY & EQUITY RELATED INSTRUMENTS – 65 % OF TOTAL
ASSETS
Large Cap Mid Cap Small Cap
1st -100th
Company in terms of full market
capitalization.
101st -250th
Company in terms of full market
capitalization.
Below 251st
Company in terms of full market
capitalization.

6. MINIMUM INVESTMENT IN EQUITY AND
EQUITY RELATED INSTRUMENTS
75% of total
assets
Large cap- 25%
of total asset
Mid cap- 25% of
total asset
Small cap- 25%
of total asset
Balance 25%, giving
flexibility to the fund
manager

7. CONDITION OF PREVIOUS CIRCULAR
- YES, APPLICABLE ON SAME MANNER.

8. CONCLUSION
- CHANGES ACCORDING TO THE CIRCULAR
- MERGE SCHEME WITH LARGE CAP SCHEME
- CONVERT MULTI CAP SCHEME TO ANOTHER SCHEME CATEGORY, E.G. LARGE CUM MID CAP SCHEME.

9. THANKING YOU
CONTACT US
READY4COMPLIANCE@GMAIL.COM
+91-7828556203