The circular discusses asset allocation of multi cap funds and observes some schemes are focused only on large caps with little investment in small caps, behaving more like large cap funds. It defines a multi cap fund as one investing across large, mid, and small cap stocks with minimum 65% in equities. The circular sets new guidelines that multi cap funds must invest minimum 25% each in large, mid, and small caps to be truly multi cap. Funds not meeting these criteria must merge with a large cap fund or convert to another category like large mid cap.