Asset Allocation of Multi Cap Funds
Summary
SEBI mandates that Multi Cap Funds must allocate at least 25% of their total assets each to large, mid, and small cap companies. Existing Multi Cap Funds are required to comply with these new asset allocation norms within one month from the publication of the January 2021 stock list by AMFI. This circular modifies previous guidelines while keeping all other conditions from the October 2017 circular unchanged.
Text
Minimum investment in equity & equity related instruments -75% of total assets in the following manner: o Minimum investment in equity & equity related instruments of large cap companies - 25% of total assets o Minimum investment in equity & equity related instruments of mid cap companies - 25% of total assets o Minimum investment in equity & equity related instruments of small cap companies - 25% of total assets
All the existing Multi Cap Funds shall ensure compliance with the above provisions within one month from the date of publishing the next list of stocks by AMFI, i.e. January 2021.
All other conditions specified in aforesaid circular dated October 06, 2017 shall remain unchanged.
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Asset Allocation of Multi Cap Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.