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NAME OF CIRCULAR: ASSET
ALLOCATION OF MULTI CAP FUNDS
CIRCULAR DATE : 11-09-2020
OBJECTIVE:
-TRUE TO LABEL SCHEME
-COMPARISONS WITH AN APPROPRIATE BENCHMARK
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.
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.
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
CONDITION OF PREVIOUS CIRCULAR
- YES, APPLICABLE ON SAME MANNER.
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.
THANKING YOU
CONTACT DETAILS
VIBHUSHARMA5233@GMAIL.COM
+91-77340340531

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Multi cap fund

  • 1.
  • 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.