The Securities and Exchange Board of India (“SEBI”), in a Circular dated 6th November, 2020, in order to give more flexibility to mutual funds, has introduced a new category named Flexi Cap Fund under the Equity Schemes.
Key Highlights:
1. Flexi Cap Fund is an open-ended dynamic equity scheme investing across large cap, mid cap, small cap stocks
2. The minimum investment which can be made in equity & equity related instruments under the new Flexi Cap Fund is 65% of the total assets
3. The Asset Management Companies are required to ensure that a suitable benchmark is adopted for the Flexi Cap Fund
4. Mutual Funds have been given an option to convert any existing into a Flexi Cap Fund subject to compliance with the requirements for change in fundamental attributes of the scheme as per the SEBI (Mutual Funds) Regulations, 1996
Source: Securities and Exchange Board of India
